Govt extends export tax refund scheme till December 31, keeps rates unchanged

The government has extended the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme by three months till December 31, 2026, keeping the existing rates and value caps unchanged.

The government has extended the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme by three months till December 31, 2026, keeping the existing rates and value caps unchanged. The extension will cover exports by Domestic Tariff Area units, Advance Authorisation holders, Special Economic Zone units and Export Oriented Units, the Department of Commerce said in a release.

“The existing RoDTEP rates and value caps, as notified in Appendix 4R and Appendix 4RE as applicable on 30th September 2026 shall continue unchanged during the aforesaid period,” the release said. RoDTEP reimburses exporters for embedded central, state and local duties, taxes and levies that are not refunded through other mechanisms, helping reduce the domestic tax burden built into exported goods.

“The RoDTEP Scheme refunds embedded, un-rebated Central, State and local duties, taxes and levies borne on exported products — including prior-stage cumulative indirect taxes,” the Commerce Department said. The extension provides continuity to exporters amid uncertain global demand, higher logistics costs and geopolitical disruptions. Earlier this year, the government had restored full RoDTEP rates after temporarily restricting them, citing freight pressures and trade risks linked to disruptions in West Asia.

The scheme, operational since January 1, 2021, covers a wide range of merchandise exports. Advance Authorisation holders, EOUs and SEZ units, which were brought under broader RoDTEP coverage in 2024, together accounted for around a quarter of India’s exports at the time, according to the Commerce Ministry. Government data released in 2025 showed that RoDTEP covered more than 10,700 tariff lines, with cumulative disbursements crossing Rs 57,976 crore as of March 31, 2025.

The government also extended RoDTEP benefits to eligible exports through the postal channel from January 2026, widening access for MSMEs, artisans, start-ups and smaller exporters. The latest extension follows the scheme’s earlier continuation from April 1 to September 30, 2026. The next key decision for exporters will be whether the scheme is extended beyond December 31. (ANI)