Government Extends RoDTEP Scheme Benefits for Exporters Until 2025

The government has extended benefits under the RoDTEP scheme for exports from DTA units until September 30, 2025. The scheme, providing tax refunds on exported products, now includes AA, EOU, and SEZ units until December 31, 2024. Revised rates will be effective from October 10, 2023.

The government on Monday extended benefits under the RoDTEP scheme for exports made from domestic tariff area (DTA) units for one year till September 30, 2025.

The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme provides refunds of taxes, duties, and levies incurred by exporters in the manufacturing and distribution processes that are not reimbursed through other mechanisms at the central, state, or local levels.

Launched in January 2021, and initially set to end in September 2023, the Directorate General of Foreign Trade (DGFT) announced via notification the extension for Advance Authorisation (AA) holders, Export Oriented Units (EOUs), and Special Economic Zones (SEZs) until December 31, 2024.

Additionally, the revised rates under the scheme are set for implementation on October 10, 2023, pending updates to the ICEGATE portal, which is essential for filing customs-related documents online.

In FY23, the scheme supported USD 450 billion in exports at a cost of Rs 13,020 crore, compared to USD 421 billion and Rs 12,100 crore in 2021-22. The refund rate ranges from 0.5% to 4.3% of the product's value.

(With inputs from agencies.)