RoDTEP Scheme: New Guidelines for Mandatory Composition Audit 2024

The Directorate General of Foreign Trade (DGFT) has introduced specialized compliance layers for the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. To maintain the fiscal integrity of the program, exporters are now required to adhere to periodic composition audits. These audits focus on verifying that the remission rates received do not exceed the actual embedded taxes and duties incurred during the production and distribution of the exported goods. ## What this means for exporters Exporters must maintain rigorous documentation of all input taxes, including electricity duties, VAT on fuel, and mandi tax, which are not covered under other schemes like GST. As per the latest RoDTEP Scheme guidelines, any discrepancies found during a composition audit could lead to the cancellation of e-scripts or the recovery of excess credits with interest. It is vital for SME manufacturers to conduct internal reconciliations before the official monitoring committee reviews their filings. This proactive approach ensures continued eligibility and prevents liquidity issues arising from sudden recovery notices. Exporters are advised to refer to the official DGFT RoDTEP portal frequently to check for specific HSN-level audit triggers and ensure their Shipping Bill declarations align perfectly with their production cost sheets.