ECONOMY
Government sets up panel to review rates of tax refunds under export schemes
- IBJ Bureau
- Oct 30, 2025
The government has constituted a committee to review the rates of tax refund under the export schemes – Remission of Duties and Taxes on Exported Products (RoDTEP) and Rebate of State and Central Taxes and Levies (RoSCTL).
Both these schemes are set to expire by the end of this financial year, and the committee has been given time till March 31, 2026, to submit its main report. The panel is headed by former secretary Neeraj Kumar Gupta.
RoDTEP was introduced in January 2021 as a replacement for Merchandise Exports from India Scheme (MEIS) after it was successfully challenged at the World Trade Organization (WTO) by the US.
It covers exports of 10,642 products and provides refund of taxes, ranging from 0.3 to 4.3 per cent. RoSCTL was also introduced in 2021 for textile and garment exporters.
Under RoSCTL, the maximum rate of refund of taxes paid at the production stage for apparel is 6.05 per cent, while for made-ups, this is up to 8.2 per cent. Garment and made-up segments such as home textile products are covered under the scheme.
The committee is expected to recommend the ceiling rates under RoSCTL and RoDTEP for exports from domestic tariff areas and special economic zones and for advance authorisation holders.
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