Govt extends RoDTEP, RoSCTL export tax remission schemes till December 31
New Delhi, Sep 30, 2026
RoDTEP and RoSCTL, which reimburse exporters for embedded non-creditable levies, have been extended by three months, though experts seek a longer five-year extension
The government on Wednesday extended its key export-oriented tax remission schemes, Remission of Duties and Taxes on Exported Products (RoDTEP) and Rebate of State and Central Taxes and Levies (RoSCTL), by three months till December 31.
Both schemes were set to end on Wednesday.
Under the two schemes, the government reimburses exporters for embedded non-creditable central, state and local levies paid on inputs. RoSCTL is specifically for textile exports, while RoDTEP is for all other products.
They are based on the principle that taxes should not be exported. The schemes aim to ensure the zero-rating of exports to make them competitive.
"The extension will ensure policy continuity and predictability for exporters, while sustaining the competitiveness of India’s labour-intensive and value-added apparel and made-ups sector in an increasingly competitive global trading environment," the government said in a press release.
However, experts believe that the schemes deserve a longer extension.
"Such short extensions defeat the scheme’s core purpose: exporters finalise orders months before shipment and cannot factor tax refunds into their pricing without knowing whether the scheme will continue," said Ajay Srivastava, founder of Delhi-based think tank Global Trade Research Initiative (GTRI).
"RoDTEP is not an export incentive or subsidy; it returns taxes already paid during production, including state taxes on fuel, electricity duties and mandi charges, that are not otherwise refunded," Srivastava added.
The two flagship tax remission schemes have been extended several times in the past as well, often together. The government last extended both schemes by six months in March to support exporters amid the conflict in West Asia.
"The government should announce a five-year extension to give exporters certainty, help them price orders competitively and avoid losing contracts because of policy uncertainty," Srivastava said. "This certainty is especially important in today’s difficult export environment, when exporters need every cost advantage to retain business."
The Commerce Ministry had also sought an extension of five years for the schemes. The final call in the matter lies with the Finance Ministry.
[The Business Standard]
