By Harsh Ashar November 7, 2024

DGFT introduces new compliance requirement of submitting Annual Returns for RODTEP Scheme

DGFT introduces new process of submitting Annual Returns for RODTEP Scheme, the steps for the process is shown as below:

To assess the inputs used in export production and actual taxes incurred, exporters claiming RoDTEP benefits must file an Annual RoDTEP Return (ARR) as per Appendix-4RR of the 2023 Handbook of Procedures. ARR for claims filed in a given financial year must be submitted on the DGFT portal by March 31 of the following financial year. This requirement initially applies to exporters (IECs) with RoDTEP claims exceeding ₹1 crore across all 8-digit HS codes in a financial year.
Failure to submit the ARR will result in denial of RoDTEP benefits, and no further RoDTEP claims will be processed at the Customs Port of Export after a three-month grace period ending June 30.
A composition fee of ₹10,000 is required for delayed ARR filing until June 30 (for FY 2023-24). After this date, the fee increases to ₹20,000. Upon payment, RoDTEP scrolls will resume within 45 days, covering previously held Shipping Bills, until an online API-based system is established between DGFT and Customs.
Records supporting duty remission claims filed in the ARR must be kept for five years and may be requested by the authority reviewing the ARR.
ARR filings may be periodically reviewed for due diligence and submitted to the RoDTEP Committee for potential rate adjustments, including increases where justified.
Certain ARR cases may be flagged for scrutiny using IT-based risk criteria to assess input usage and taxes incurred. If excess claims are identified, the RoDTEP scrip holder must refund or surrender the excess. Failure to do so within the specified time will result in suspension of further scheme benefits.