India to Restore Exporter Tax Refunds from June to Boost Trade

India to Restore Exporter Tax Refunds

The Indian government will reinstate the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme starting June 1, 2025, according to a statement from the commerce ministry. This scheme refunds exporters for certain central and state duties, taxes, and levies that are not reimbursed under any other government programme.

The scheme applies to a wide range of exports, including goods from Domestic Tariff Areas (DTAs), Advance Authorisation (AA) holders, Export-Oriented Units (EOUs), and Special Economic Zones (SEZs). Covered sectors include textiles, chemicals, pharmaceuticals, automobiles, agriculture, and food processing.

RoDTEP was originally introduced on January 1, 2021, but was paused on February 5, 2025, for review. It will now resume from June for all eligible exports. The scheme is WTO-compliant and uses a digital platform for processing refunds.

Financial Allocation

For the current financial year (FY26), the government has set aside ₹18,233 crore for RoDTEP. This will cover 10,780 HS code lines for DTA exports and 10,795 HS code lines for AA/EOU/SEZ exports.

As of March 31, 2025, total disbursements under the scheme stood at ₹57,976.78 crore.

Industry Requests

Several trade associations, including FICCI, FIMI, and the Aluminium Association of India, had requested the government to restore the scheme. The Federation of Indian Export Organisations (FIEO) welcomed the decision but requested that the scheme be made effective from February 7, the day after the earlier programme ended, to avoid a gap in coverage.

This follows the signing of a trade agreement with the UK and ongoing negotiations with the US. The earlier pause in the scheme was described by officials as a period to reassess the support exporters needed in the current environment.

Read More: Govt Eases GST Registration Rules to Encourage Small Businesses

Conclusion

The RoDTEP scheme will now resume from June 1 for eligible exporters, covering a broad range of products and sectors, with a government outlay of ₹18,233 crore for FY26.

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