Govt Extends RoDTEP Export Tax Refund Till Dec 31
The RoDTEP scheme has been extended until December 31, 2026, providing relief to exporters against embedded duties and taxes.
In a significant move to support the nation's trade sector, the Indian government has announced the extension of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. The scheme will now remain operational until December 31, 2026, providing much-needed stability to exporters navigating a volatile global market.
No Changes to Rates or Value Caps
While the timeline has been extended, the Department of Commerce has confirmed that the existing tax rates and value caps will remain unchanged. Specifically, the rates and caps notified in Appendix 4R and Appendix 4RE as of September 30, 2026, will continue to apply throughout the extended period.
This decision ensures that exporters can rely on predictable financial frameworks as they manage their operations. The extension is expected to benefit a wide range of entities, including:
- Domestic Tariff Area (DTA) units
- Advance Authorisation holders
- Special Economic Zone (SEZ) units
- Export Oriented Units (EOUs)
Boosting Export Competitiveness
The RoDTEP scheme plays a vital role in India's export strategy by reimbursing exporters for embedded central, state, and local duties and taxes. These are levies that are not refunded through any other mechanism, effectively reducing the domestic tax burden built into the cost of exported goods.
By mitigating these costs, the scheme helps Indian products remain competitive on the global stage. This is particularly crucial in the current economic climate, where exporters are facing:
- Uncertain global demand
- Rising logistics and freight costs
- Geopolitical disruptions, particularly in West Asia
A Massive Scale of Support
The scale of the RoDTEP program is immense. Since its inception on January 1, 2021, it has grown to cover more than 10,700 tariff lines. According to government data from 2025, cumulative disbursements under the scheme had already crossed Rs 57,976 crore as of March 31, 2025.
The scheme has also become more inclusive over time. In 2024, Advance Authorisation holders, EOUs, and SEZ units were brought under its coverage—entities that together accounted for approximately one-quarter of India's total exports. Furthermore, from January 2026, the government expanded benefits to eligible exports via the postal channel, a move designed to empower MSMEs, artisans, and start-ups.
As the deadline of December 31, 2026, approaches, the industry will be watching closely to see if the government decides to extend the scheme beyond this new timeframe.