GST on sale of RODTEP duty credit licence

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We will be selling Duty Credit Licence [RoDTEP]  at a market determined rate. HSN is 49070090. Whether GST will be applicable or not ? If applicable, on what value ? If it is sold at a discount, how to account for loss on sale? Could be at a profit sometime?

Replies (8)
Quick Summary
Sale of RoDTEP duty credit scrips is generally considered GST exempt as per specific circulars clarifying exemption for duty credit scrips under HSN 4907. Hence, no GST is applicable on such transfers, and they should be reported accordingly as exempt supply in GST returns.

GST is not applicable. Sale of RoDTEP scrips aare exempted under GST.

entry number please for exemption

How we will enter the invoice of Sale of RoDTEP scrips in our Gstr-1????????????????



 

Please share Any Notification...

GST applicability: - Yes, GST is applicable on the sale of Duty Credit Licenses (RoDTEP). - HSN code 49070090 falls under the category of "Other" which is taxable under GST. - GST rate will be applicable as per the notified rate for "Other" category, currently 18%. Value for GST: -

 GST will be applicable on the transaction value, which is the market-determined rate at which you sell the RoDTEP. -

If sold at a discount, the discount amount will be deducted from the transaction value to arrive at the taxable value. 

Accounting for loss on sale: - If sold at a loss, the loss can be accounted for as a business expense. - If sold at a profit, the profit will be taxable under GST. 

Please consult a tax expert or chartered accountant for specific guidance on this matter, as GST laws and regulations are subject to change. 

Additionally, you may want to consider the following: - RoDTEP is a scheme under the FTP (Foreign Trade Policy), and specific conditions may apply. -

 Consult the GST notifications and circulars related to RoDTEP for specific guidance. - Keep accurate records of the transaction value, discount, and taxable value for GST purposes.

When entering the invoice for the sale of RoDTEP scrips in GSTR-1, follow these steps:

 1. Select the invoice type: "Supply of Goods" (even though RoDTEP scrips are not physical goods, they are treated as goods under GST).

2. Enter the invoice details: - Invoice number and date - Customer details (name, GSTIN, etc.) - Descripttion of goods: Mention "RoDTEP Scrips" or "Duty Credit Licenses" - HSN code: 49070090 - Quantity: Number of scrips sold - Unit price: Market-determined rate per scrip - Total value: 

Calculate the total value based on the unit price and quantity - GST rate: 18% (currently) - GST amount: 

Calculate the GST amount based on the total value and GST rate 

3. Select the appropriate tax category: - "Taxable" (if the sale is subject to GST) 

4. Enter the discount amount (if applicable): - If you sold the scrips at a discount, enter the discount amount in the "Discount" field 

5. Calculate the taxable value: - Taxable value = Total value - Discount (if applicable) 

6. Enter the GSTount: - GST amount = Taxable value x GST rate

7. Save and submit the invoice details in GSTR-1. 

ensure accurate reporting, as GST laws and regulations are subject to change. 

When entering the invoice for the sale of RoDTEP scrips in GSTR-1, follow these steps:

 1. Select the invoice type: "Supply of Goods" (even though RoDTEP scrips are not physical goods, they are treated as goods under GST).

2. Enter the invoice details: - Invoice number and date - Customer details (name, GSTIN, etc.) - Descripttion of goods: Mention "RoDTEP Scrips" or "Duty Credit Licenses" - HSN code: 49070090 - Quantity: Number of scrips sold - Unit price: Market-determined rate per scrip - Total value: 

Calculate the total value based on the unit price and quantity - GST rate: 18% (currently) - GST amount: 

Calculate the GST amount based on the total value and GST rate 

3. Select the appropriate tax category: - "Taxable" (if the sale is subject to GST) 

4. Enter the discount amount (if applicable): - If you sold the scrips at a discount, enter the discount amount in the "Discount" field 

5. Calculate the taxable value: - Taxable value = Total value - Discount (if applicable) 

6. Enter the GSTount: - GST amount = Taxable value x GST rate

7. Save and submit the invoice details in GSTR-1. 

ensure accurate reporting, as GST laws and regulations are subject to change. 

Rodtep is Exempt under the GST by Circular No. 46/20/2018-GST.

the duty credit scrips classifiable under 4907 were exempted from GST, while
stock, share or bond certificates and similar documents of title [other than Duty Credit Scrips],
classifiable under heading 4907, attract 12% GST

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