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India Extends RoDTEP Export Tax Refund Scheme for 3 Months to Boost Exporters
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CNBC TV18•30-09-2026, 21:47
India Extends RoDTEP Export Tax Refund Scheme for 3 Months to Boost Exporters
- •India has extended the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme by three months, allowing exporters to access benefits until December 31, 2026.
- •The scheme, which was set to expire on September 30, provides refunds for certain taxes and duties paid by exporters that are not otherwise reimbursed, including state taxes on fuel, electricity duties, and mandi charges.
- •CNBC-TV18 had previously reported on the likely extension, which has now been officially notified.
- •The government is also reviewing the RoDTEP framework to strengthen the scheme and potentially add more components, following internal discussions and consultations between ministries.
- •The extension aims to support the competitiveness of Indian exporters, especially after a previous 50% restriction on benefits was withdrawn in March 2026, which had increased exporters' costs and impacted their ability to compete in price-sensitive sectors.
Key Questions Answered
India has extended the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme by three months, granting exporters access to the benefits until December 31, 2026, after it was previously set to expire on September 30.
The RoDTEP scheme refunds certain embedded taxes and duties paid by exporters during the production and distribution of goods that are not otherwise reimbursed, such as state taxes on fuel, electricity duties, and mandi charges.
An earlier 50% restriction on RoDTEP benefits increased operational costs for exporters, making it difficult to recover embedded taxes and reducing competitiveness in price-sensitive markets amid weak global demand.
