DA Newsflash (DGFT): DGFT Introduces Online Filing for Annual RoDTEP Return (ARR)

Hope you are well and safe!

The Directorate General of Foreign Trade (DGFT) has launched an online module for filing the Annual RoDTEP Return (ARR), accompanied by a user guide and FAQs to assist exporters. This move aims to enhance transparency and compliance under the RoDTEP Scheme, ensuring accurate remission of unrefunded taxes and duties on exported goods.

?? Key Highlights:

• Separate filings required for DTA and AA/EOU/SEZ exports.
• ARR is mandatory for HS codes where the RoDTEP claim is ?50 lakh or more annually. If no single HS code meets this threshold, a return must be filed for the highest accrued claim.
• Pro-rata reporting of taxes, duties, and levies, with justification for approximations where needed.
• Minor items with low value may be omitted if they don’t significantly alter the remission amount.
• Taxes reported should be only those not rebated/refunded elsewhere, such as through GST refunds or exemptions.

?? Important Considerations:

?? Transportation Costs – VAT and Excise duty on fuel for inbound (raw materials) and outbound (finished goods to port) logistics can be included in RoDTEP claims. For agriculture, VAT on fuel for farm operations and embedded CGST/SGST on inputs like pesticides and fertilizers are eligible, provided no other refund mechanism applies.

?? Data Accuracy – While reasonable approximations are allowed where exact data is unavailable, exporters should maintain justifications for audit purposes.

?? Lack of Clarity on Prior-Stage Cumulative Taxes – No specific guidance from DGFT on Sl. No. 18A to 18F, leaving industries uncertain on how to report taxes incurred on raw materials and inputs.

?? Strict Compliance Timelines –

• March 31, 2025 – Deadline for ARR submission.
• June 30, 2025 – Late submission with penalty.
• From July 1, 2025 – Non-filers risk scrip suspension.

??What Exporters Should Do Now

• Start compiling data immediately to ensure timely compliance.
• Coordinate with vendors to gather cost details of inputs under ITC-HS codes (8-digit level).
• Ensure proper classification and documentation to avoid future disputes.

??DA Insights:

• Staying proactive is crucial, as compliance gaps may lead to complications. Industry players must ensure robust data validation to avoid risks of scrutiny and delays in RoDTEP benefits.
• Exporters who fail to submit the Annual RoDTEP Return (ARR) by the March 31, 2025 deadline can still file by June 30, 2025, subject to a composition fee of ?10,000. Submissions after June 30 will incur a higher fee of ?20,000. Non-compliance beyond this period may lead to the suspension of RoDTEP benefits.

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