The Department of Commerce has extended the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme until 31 December 2026. The decision, notified on 30 September 2026, ensures that eligible exporters continue to receive refunds on various embedded taxes and duties that have been paid during production and export.
The RoDTEP Scheme is designed to refund Central, State and local duties, taxes and levies that remain embedded in exported goods but cannot be claimed as input tax credits under the goods and services tax or other tax regimes. By removing these hidden costs, the scheme helps Indian exporters compete more fairly in international markets.
Key facts
- Notification issued: 30 September 2026
- Scheme extension date: Until 31 December 2026
- Applicable to: Domestic Tariff Area (DTA) Units, Advance Authorisation (AA) Holders, Special Economic Zone (SEZ) Units and Export Oriented Units (EOUs)
- Refund rates and value caps remain unchanged from those in effect on 30 September 2026
Who benefits from RoDTEP
Four categories of exporters are eligible for RoDTEP benefits. Domestic Tariff Area units are manufacturers and traders operating in India’s regular tariff zone. Advance Authorisation holders are importers permitted to bring in duty-free inputs for export production. Special Economic Zone units are businesses located in SEZs across India. Export Oriented Units are factories specifically set up to export their entire production.
What the scheme refunds
The RoDTEP Scheme reimburses several categories of taxes and duties that exporters cannot otherwise recover. These include embedded Central taxes such as excise duty and customs duty paid on imported raw materials. State and local taxes include VAT, entry tax and octroi. The scheme also covers prior-stage cumulative indirect taxes that have accumulated through the supply chain before the final export.
Unlike input tax credit mechanisms under the goods and services tax, which allow businesses to claim refunds of taxes paid on inputs, many embedded taxes cannot be recovered through standard tax law. The RoDTEP Scheme specifically targets these irrecoverable costs, which would otherwise make Indian exports more expensive than those from competing nations.
How rates are determined
The refund rates and value caps are detailed in Appendices 4R and 4RE of the scheme notification. These rates vary by product category and are set to approximate the actual embedded tax burden. The government has confirmed that these existing rates will remain unchanged throughout the extended period until 31 December 2026. This stability allows exporters to plan their finances with certainty.
What this means for you
If you manufacture goods for export or operate an export-oriented business, you can continue to claim RoDTEP refunds until the end of 2026 without any changes to the rates you currently receive. The scheme continues to level the playing field between Indian exporters and those from other countries that offer similar refund mechanisms.
For workers and suppliers in export industries, the continued scheme support may help sustain export competitiveness and protect jobs in manufacturing sectors.
The extension provides predictability for businesses that rely on RoDTEP to manage their costs and pricing strategies. However, exporters should note that the scheme currently runs only until 31 December 2026, and no announcement has been made about extension beyond that date.
Background
The RoDTEP Scheme replaced the earlier Merchandise Exports from India Scheme (MEIS) in January 2021. It was designed to provide more transparent and targeted refunds of taxes and duties that burden exports. Many countries offer similar mechanisms to ensure their exporters are not disadvantaged by taxes paid during production.