Export Schemes for Natural Stone — Marble, Granite, Sandstone and Kota Stone: RoDTEP, EPCG, Duty Drawback, Advance Authorisation, IGST Refund, MDA Fairs and State Incentives
Video Explanation & Insights
Natural stone exporters: every government benefit — RoDTEP, EPCG, drawback, fairs and RIPS
4 videos on this topic
Four pillars for a stone exporter
Whether you ship Makrana and Kishangarh marble, granite from Jalore or the south, Kota stone, Jaisalmer yellow or Dholpur and Bansi Paharpur sandstone, the same four sets of benefits apply: duty remission on what you export, duty relief on what you import to make it, cash-flow benefits on GST and finance, and the incentive package of your own state. On top sit market-access schemes for fairs and freight, and the option of SEZ or EOU status. CAPEXIL is the export promotion council for stone and the source of your RCMC.
| Pillar | Scheme | Benefit for stone |
|---|---|---|
| Direct margin | RoDTEP | Remission of embedded duties as e-scrips, a small percentage of FOB value for the chapter 25 / 68 stone codes, credited on the DGFT–ICEGATE ledger; pay customs duty with them or sell them to an importer |
| Value-add | EPCG | Import CNC cutters, gang saws, bridge saws, polishing and resin lines at zero customs duty against an export obligation of six times the duty saved in six years |
| Value-add | Duty drawback (sections 74 / 75, Customs Act 1962) | Refund of customs duty paid on imported inputs that go into exported goods, or on goods re-exported; credited directly to the exporter's account |
| Value-add | Advance Authorisation | Duty-free import of consumables used in production — abrasives, diamond blades and bits, resins and chemicals — with a value-addition norm; choose drawback for the baseline and AA where consumable imports justify it |
| Cash flow | IGST refund / LUT | 100% refund of IGST paid on exports or of unutilised ITC on blades, tools and machinery under LUT |
| Cash flow | Export credit support | The Interest Equalisation Scheme gave 2–3% on rupee export credit until it lapsed on 31 December 2024; check the current export-credit support with your bank (SIDBI, SBI, Bank of Baroda) |
| Geography | State package — Rajasthan RIPS 2024 and equivalents | 75% SGST reimbursement, interest subsidy, electricity duty exemption and capital subsidy on machines; HEEP (Haryana), MP Invest, and policies in Gujarat, Karnataka, Tamil Nadu, Telangana |
| Market access | MDA / MAI, RAMP | Fair participation subsidy (75% up to ₹3 lakh as the video explains) — one international, two national and three regional fairs under RAMP-linked state schemes — plus freight support to the port in some states |
| Structure | SEZ / EOU | Unit treated as foreign territory: duty-free imports, GST-free procurement and other benefits, against a positive net foreign exchange obligation |
Drawback versus Advance Authorisation, and EPCG maths
- •Drawback needs no prior licence and pays on every shipping bill — the baseline for most stone exporters.
- •Advance Authorisation pays more when imported consumables are a material share of cost, but requires a licence in advance, value-addition compliance and closure with export documents.
- •EPCG: a ₹2 crore polishing line saving ₹40 lakh of duty carries an export obligation of ₹2.4 crore of exports (six times) over six years, over and above the average of the previous three years — plan the obligation before the import.
- •RoDTEP scrips must be claimed on the shipping bill (declaration ‘RODTEPY’) — a missed declaration cannot be fixed later.
The baseline audit and set-up
- 1Step 1 — Registrations: IEC, AD code, CAPEXIL RCMC, GST with LUT, ICEGATE and DGFT logins.
- 2Step 2 — Baseline audit of the last two years' shipping bills: RoDTEP declared and scrips generated? Drawback received? IGST refunds matched?
- 3Step 3 — Machinery plan: EPCG authorisation for planned imports; Advance Authorisation or drawback on consumables.
- 4Step 4 — State application (RIPS or equivalent) for the unit's investment and SGST; MDA / MAI applications before each fair; RAMP freight claims.
- 5Step 5 — Monthly cycle: LUT exports, IGST / ITC refunds, scrip monetisation, drawback reconciliation, export obligation tracking.
Stone export incentives: questions we are asked
Rates are notified by HS code for chapter 25 and 68 stone products and are a small percentage of FOB value, credited as transferable e-scrips. Check the current rate schedule for your code.
Yes, under EPCG — zero duty against an export obligation of six times the duty saved within six years.
Drawback is the no-licence baseline; Advance Authorisation pays more when imported abrasives, blades and resins are a large share of cost.
The Interest Equalisation Scheme lapsed on 31 December 2024; ask your bank about current export credit support and watch for a successor.
CAPEXIL — the Chemicals and Allied Products Export Promotion Council — covers natural stone and stone products.
Under RIPS 2024: 75% SGST reimbursement, interest subsidy, electricity duty exemption and, for MSMEs, capital subsidy on machinery.
Yes — the baseline audit, DGFT and customs schemes, GST refunds, state applications and fair subsidies, plus scrip sale and purchase.