The Gem & Jewellery Export Promotion Council (GJEPC), in collaboration with Shangrila Corporate Services (SCS), recently organised a webinar on the overview, benefits and procedures of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.

The webinar was attended by close to 50 member companies. It was moderated by Supreme Kothari, an independent Tax & Legal Practitioner, along with a panel including industry veterans such as Dr. Dinesh Dua, Immediate Past President, Pharmexcil, and Ashish Bhagchandka, AVP – SCS.

The attendees were briefed about the overview of the RoDTEP scheme; applicability of incentives to gems and jewellery sector; pre-requisite documents and key processes; and envisaged challenges and their resolution. This was followed by a Q&A session. The participants were also apprised on the export performance of the sector, while highlighting the key initiatives taken by GJEPC to enhance exports.

The challenges while claiming incentives were further broken down into two aspects:

Eligibility-related challenges

• Intent selected as “No” on the portal
• Export through availing advance license or through SEZ / EOU units

Process-specific challenges

• Server inaccessibility
• Scroll generation
• Transmission errors
• Reflection of actual export values in systems
• Non-approval of Duty Credit in shipping bill by Customs

The session was followed by an interactive Q&A session between the members and panellist. Critical questions answered during the webinar were:

Question: Is there any GST applicability to RoDTEP scheme?

Answer: No, there is no GST applicability to RoDTEP scheme. In case there is a co-related inward procurement or common input services, to that extent we will have to reverse input tax credit to the extent that it is pertaining to the RoDTEP scrips in transaction.

Question: Can the RoDTEP benefits be claimed if the exporters are already availing duty drawback benefits?

Answer: Yes, duty drawback is a different scheme from RoDTEP and the benefits can be claimed simultaneously.

Question: Can an exporter utilise use the RoDTEP scrips against BCD on imports?

Answer:  Yes, scrips can be used against BCD on inputs.

Question: Can traders also take these benefits instead of manufacturers?

Answer: Yes, merchant exporters are equally eligible for claiming these incentives.

Question: From which specific dates will the exporters start claiming benefits from RoDTEP scheme?

Answer: Exporters are eligible for claiming RoDTEP benefits from the 1st of January 2021.