Govt to extend RoDTEP scheme benefits to e-commerce exporters

Govt to extend RoDTEP scheme benefits to e-commerce exporters

The government will soon extend the benefits of its RoDTEP scheme to e-commerce exporters, Commerce Minister Piyush Goyal said.

Speaking to reporters on December 28 at the launch of the launch of an e-commerce exports handbook for micro, small, and medium enterprises (MSMEs), Goyal said a notification on the same would soon follow.

The RoDTEP, or Remission of Duties or Taxes on Export Product, scheme has been effective since January 2021 and aims to neutralise the impact of duties, taxes, and other levies at the central, state, and local levels imposed on the exported product. Under the scheme, a rebate is provided for all hidden taxes at every level on the exported product that has not been refunded under any other existing scheme.

"Whatever Income Tax-enablement is required with the Department of Revenue, we are working on that and we will finalise that very soon," a government official said on the condition of anonymity.

According to the source, it will take around two-and-a-half months for the government to notify the scheme's extension to exporters.

Currently, the Indian government does not have any estimate for how much is exported in total from India through the e-commerce channel. However, it is known that around $1-1.5 billion of e-commerce exports happen through the postal and courier routes. Meanwhile, e-commerce players estimate that they export around $7-8 billion annually through the merchandise goods route.

According to the aforementioned official, the government will utilise it's entire allocation of Rs 15,070 crore for the RoDTEP scheme for the year.

"We are taking stock of the expenditure till now. It indicates that the full budget will be used. I think we have used around Rs 12,000 crore so far," the official said.