To address these issues, the government has introduced the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme with a view to give a boost to the country’s outbound shipments.
This new scheme reimburses currently un-refunded Central, State, and Local taxes and duties incurred in the process of manufacture and distribution of exported products in a way that is compliant with the WTO norms.
It aims to provide a level playing field to domestic industry abroad.
Major components of taxes covered are electricity duty, value-added tax (VAT) on fuels used in transportation/ distribution, mandi tax, stamp duty, etc.
It may be noted that rebate under the Scheme shall not be available in respect of duties and taxes already exempted or remitted or credited.