Govt set to extend input tax remission scheme for exporters beyond Sept 30
In what could provide confidence to Indian exporters grappling with an unpredictable global market, the government is set to extend the popular Remission of Duties and Taxes on Exported Products (RoDTEP) scheme beyond September 30, 2025 when it is scheduled to lapse, sources have said.
“The scheme will definitely be extended beyond September 30, 2025 to the main beneficiaries. It is usually extended for a limited period just to monitor the spend and ensure that the budgetary allocation for the scheme is not exceeded. We are comfortable as far as budgetary allocation for the ongoing fiscal is concerned,” a source told businessline.
There is no guarantee, however, that the benefits will also be extended to units in SEZs and EOUs and Advance Authorisation (AA) holders, the source added.
For FY26, the Budget for RoDTEP is Rs.18,000 crore as opposed to Rs.16,575 crore in the previous fiscal, the source pointed out.
“As exports of goods at the moment are not growing at a fast pace because of global uncertainties, one can expect that RoDTEP claims will not overshoot the allocation,” the source said.
The RoDTEP scheme, announced in January 2021, refunds embedded duties and taxes, such as VAT on fuel used in transportation, mandi tax and duty on electricity used during manufacturing of the exported items.
