Government Extends RoDTEP Export Tax-Refund Scheme to December 31, 2026, Keeping Rates Unchanged

Nishant

Administrator
Staff member
The Commerce Ministry has extended the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme by three months, pushing its validity from September 30 to December 31, 2026, according to an announcement on October 2, 2026. DGFT Notification No. 41/2026-27, dated September 30, 2026, gives effect to the extension.

Under the extension, existing refund rates and value caps — as applicable on September 30, 2026 — remain unchanged, as do all other terms and conditions of the scheme. Refund rates range from 0.3% to 3.9% depending on the product, according to a PTI report cited by the Economic Times. The scheme covers exports by Domestic Tariff Area units, Advance Authorisation holders, Special Economic Zone units and Export Oriented Units.

Relief for exporters

RoDTEP refunds embedded, un-rebated central, state and local duties built into exported goods, directly affecting exporters' margins and pricing against foreign competitors. Cumulative disbursements under the scheme have topped ₹57,976 crore across more than 10,700 tariff lines as of March 31, 2025, per the Commerce Ministry, with AA holders, EOUs and SEZ units accounting for around a quarter of India's exports.

The extension offers exporters — already squeezed by uncertain global demand, higher logistics costs and West Asia trade disruptions — three more months of cost relief at unchanged rates. Earlier this year the government had restored full RoDTEP rates after temporarily restricting them, citing freight pressures and trade risks from West Asia disruptions. The budget allocation for the scheme stands at ₹10,000 crore for the current financial year, down from ₹18,232 crore in 2025-26.

The scheme, introduced on January 1, 2021, was earlier continued for the April 1 to September 30, 2026 period; its benefits were also extended to the postal channel from January 2026 for MSMEs and artisans.

Sources:
- Economic Times: India extends RoDTEP scheme till December 31, keeps export refund rates unchanged
- Tribune (ANI): Govt extends export tax refund scheme till December 31, keeps rates unchanged
 

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