Explanation:

The Cabinet Committee on Economic Affairs has approved a scheme for “Remission of Duties and Taxes on Exported Products (RoDTEP)” to boost exports to International Markets. Under this scheme a mechanism would be created for reimbursement of taxes/ duties/ levies, at the central, state and local level, which are currently not being refunded under any other mechanism, but which are incurred in the process of manufacture and distribution of exported products. This scheme is going to give a boost to Indian exports providing a level playing field for Indian producers in the International market so that domestic taxes/duties are not exported. An inter-ministerial Committee will determine the rates and items for which the reimbursement of taxes and duties would be provided. Refund under the Scheme, in the form of transferable duty credit/electronic scrip will be issued to the exporters, which will be maintained in an electronic ledger. The Scheme will be implemented with end to end digitization. The refunds under the RoDTEP scheme would be a step towards “zero-rating” of exports, along with refunds such as Drawback and IGST.