Remission of Duties and Taxes on Export Products (RODTEP)
Why in news : As Indian exports have been badly hit by the waning global demand, the Government of India has decided to include 3 new sectors which are Pharmaceuticals, Chemicals and Iron & Steel sector under the RODTEP scheme.
More about RODTEP scheme :
- It is a new scheme that came into effect from January 1st, 2021 and it is notified by the Ministry of Commerce and Industry.
- The scheme was formulated to replace the existing scheme which is MEIS (Merchandise Exports from India Scheme).
- The previous MEIS scheme has to be removed because it was compliant with the rules of the World Trade Organization.
- The RODTEP scheme was launched to provide zero rating of exports and also to ensure that no domestic taxes are added to goods that are manufactured for exports.
- Rebates will be issued in the form of a transferable duty credit/electronic scrip (e-scrip) which will be maintained in an electronic ledger by the Central Board of Indirect Taxes and Customs (CBIC).
- For export of Garments, there is another scheme which is the Rebate of State and Central Levies and Taxes (RoSCTL) Scheme.
Central Board of Indirect Taxes and Customs (CBIC) :
- It comes under the Department of Revenue under the Ministry of Finance, Government of India.
- CBIC is a statutory body established under the Central Boards of Revenue Act, 1963.
- It is the authority responsible for administering indirect taxes such as GST, central excise, service tax, customs etc.
Syllabus : Prelims + Mains; GS3- various Government schemes in news related to Indian Economy
