RODTEP scheme: how it supports exporters In the context of international business, a 1% variation in prices decides whether an export deal worth millions will be placed in India or not. The RoDTEP Scheme, which stands for “Remission of Duties and Taxes on Export Products Scheme ,” is one of the main export schemes introduced by the Indian government. In cases when the Indian exporter is faced with hidden costs such as electricity charges, petroleum charges, and mandi charges, which are not eligible for GST, thus making it expensive and uncompetitive, that is where this scheme applies. It was established on January 1, 2021, to supersede the existing MEIS program, and its function is to ensure that the Indian export is Zero-Rated.
April 2026 sees the project reach its crucial stage. Following some tight-fisted financial policies and reduced rates earlier in the year, the government has provided full backing once again to assist exporters cope with increasing freight charges around the world. This brochure details the RoDTEP system for 2026 and how it can put cash back into your pocket.
Definition of RoDTEP? The term RoDTEP stands for Remission of Duties and Taxes on Export Products. This scheme offers a rebate of duty and tax, based on those duties and taxes which form the cost of export but which do not enjoy the benefits of any other scheme. This scheme is meant to ensure that no exporter from India suffers from any disadvantage due to the taxes involved in the cost of export. The credits are given in the form of freely negotiable e-scrips that can be used against basic custom duty on imported goods.
What taxes does RoDTEP cover? RoDTEP is not a subsidy, which the WTO often rejects. It is rather a remission. It refunds taxes that leak into the production cost because they are not part of the GST credit chain.
Remissions that includes: Energy Costs: State Electricity Duty on manufacturing.
Logistics: VAT on fuel like petrol or diesel, used in the transportation of export goods.
Local Levies: Mandi Tax, Municipal Taxes, and Stamp Duty on export documents.
Coal Cess: The Clean Environment Cess on coal used in power generation for factories.
Suggested Reads: Cess Taxes
How to claim the benefit via ICEGATE The RoDTEP benefit is not a cash refund to your bank account. It is provided in the form of transferable e-scrips or electronic scrips, through the ICEGATE portal .
Declaration: You must mark “RODTEPY” on your Shipping Bill at the time of export. If you forget this, you cannot claim it later.
Scroll Generation: Once the Export General Manifest (EGM) is filed, Customs processes the claim and generates a “scroll.”
E-scrip: Within your Electronic Credit Ledger or ECL on ICEGATE, you can convert these scrolls into e-scrips.
Utilitisation : You can use these scrips to pay Basic Customs Duty or BCD on your own imports or sell them to other importers at a small discount, usually 98-99% of face value to gain instant liquidity.
Eligibility and sector wise rates In the table given below, we have explained how the Sector wise RoDTEP rates changes, their HSN Chapters range and their current status. Find a detailed breakdown in GlobalOmega’s blog.
Sector HSN Chapters Average RoDTEP rate Status Textiles 50-63 1.2% - 4.3% High Support Agri Products 01 - 24 1.0% - 3.5% Full Rate Restored Engineering Goods 72-85 0.5% - 1.0% Critical for Margins Handicrafts Various 2.5% - 4.0% MSME Focused SEZ / EOU Units All Same as DTA Now fully eligible
2026 updates of extension and restoration The first quarter of 2026 was a rollercoaster to the export community. As of April 20, 2026, according to RASP International :
Scheme Extension : Via DGFT Notification No. 74/2025-26, issued March 31, 2026, the RoDTEP scheme has been officially extended to September 30, 2026. This provides much needed policy continuity for long term export contracts.
Rate Restoration: In February 2026, the government reduced payments to half of the notified rates due to budgetary limitations, and it being short. But, after much consideration by industry suggestions, the rates were restored fully back from March 23, 2026.
Budget Allocation: The current FY2026-27 budget has allotted around ₹10,000 crores towards this scheme. Although it is less than last year's budget, it continues to play a critical role for MSMEs.
Conclusion The RoDTEP scheme is a cornerstone of India’s export strategy in 2026. By neutralising the tax on tax effect, it allows the Indian exporters to price their products competitively in tough markets like the US, EU, and SE Asia.
As a business owner, the most important lesson one can learn in recent times is vigilance. With the budget being managed tightly, ensure your Shipping Bills are filed with the correct 8-digit HS codes and a RODTEPY declaration is checked. Do not let your e-scrips sit idle in the ledger, and rather convert and utilise them to improve your cash flow today!
FAQs Is RoDTEP available for duty drawback? Yes, RoDTEP and Duty Drawback are complementary. Duty Drawback remits customs duties on imported inputs while RoDTEP remits domestic internal taxes like fuel VAT and electricity duty.
What is the validity of the RoDTEP e-scrip? The e-scrips are valid for one year from the date of generation. They must be utilised or transferred within this timeframe, as they cannot be renewed once they expire.
Can i claim RoDTEP for service exports? No, currently the RoDTEP scheme is strictly limited to the export of physical goods. Service exporters are generally covered under different GST refund mechanisms,
How do i sell my RoDTEP e-scrips? E-scrips can be transferred to any other person who has an ICEGATE ID. This is usually done through a broker or directly to an importer who needs to pay Basic Customs Duty.
Are there caps on the remission amount? Yes. certain products have a Value Cap, for example, ₹x for per kg. In such cases, the remission is calculated as either the percentage rate or the cap amount, whichever is lower.
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