RoDTEP Scheme: New Compliance Check for Deemed Export Claims 2024

The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme remains a cornerstone of India's strategy to make exports zero-rated. However, the scrutiny regarding 'Deemed Exports'—where goods do not leave the country but are supplied to EOU/SEZ units or under specific authorizations—has intensified. The government has clarified that the intent of RoDTEP is to remit taxes that are not otherwise refunded, and dual benefits must be strictly avoided. Exporters engaging in deemed export transactions must maintain meticulous records of the taxes paid on inputs. The integration with the ICEGATE system now allows for more granular tracking of shipping bills and supply invoices. For SMEs, this means that the declarations made at the time of filing the shipping bill or the supply invoice are critical. Any discrepancy between the claim and the underlying tax incidence can lead to demand notices and penalties under the Customs Act. ## What this means for exporters As per the RoDTEP Advisory and the latest portal updates, exporters must verify that their HSN codes are eligible and that they are not simultaneously claiming benefits under other conflicting schemes like the RoSCTL for the same tax components. A self-declaration of 'non-recovery' of taxes from other sources is now a mandatory part of the filing process. We recommend a quarterly internal audit of all RoDTEP credit ledgers to ensure that the scrolls generated align with actual export values and applicable rates. Reference: Based on the RoDTEP Scheme guidelines available on the CBIC and DGFT portals.