New Delhi: The government will notify the new refund scheme for exporters – Refunds of Export Product Tasks and Taxes (Rodtep) – this week, with the final permit from trading and the Minister of Industry Piyush falter estimated in one or two days.
The scheme was intended to replace the Incentives of World Trade Organization (WTO), applied in January but exporter has been waiting to get their contributions for the tax paid by them for the past eight months.
Partial notification will end waiting for misery, which has increased their funding requirements because the center has resisted their claims.
While the Trade Secretary B V R Subrahmanyam said that the scheme would be carried out, several documents have not been completed after trade and the Ministry of Finance agreed to expand the scope of the scheme to cover all products, which also require a higher budget allocation.
The two previous ministries have agreed to increase the allocation of the initial 13,000 Crore Hospital allocated to RS 17,000 Crore.
Last week, the government had told the rebates of the state tax scheme and the center and levy (ROSCTL), the same mechanism, to allow textile exporters to get discounts on central and state taxes until March 2024.
According to the industry estimating the government owed to the Government Rs 8,000 Crore To the exporter in the unpaid Rodtep bill, with RS 3,500-4,000 Crore Arrears on the ROSCTL account.
Furthermore, around RS 16,000 crore payments from the export of merchandise which are now dead from the Indian scheme (MEIS) will mature for April-December 2020.
So, exporter demands payment of nearly 28,000 crores only from these three schemes.
Exporters have complained about the government sitting on a tax refund and arrears from the previous scheme such as the export of services from the Indian scheme (Seis) and Meis left after the US dragged India to the WTO, on the grounds that they were not obedient with the rules of global trade.
Government sources say refunds can be useful at the time of costs as fuel and goods have risen due to the dynamics of global and domestic prices.