The move follows a recommendation by the expenditure finance committee late last month for better targeting and optimal use of funds
The government has begun work on revamping the two main schemes that reimburse exporters for domestic taxes and levies, following a recommendation from the expenditure finance committee (EFC) in late September. Two separate panels have been constituted for this purpose, according to three people familiar with the development.
The Remission of Duties and Taxes on Exported Products (RoDTEP) panel will be led by Director General of Foreign Trade Lav Agarwal. The Rebate of State and Central Taxes and Levies (RoSCTL) panel will be headed by Arti Kanwar, additional secretary in the textiles ministry. Both panels include senior officials and industry representatives.
**Why the review is happening**
The EFC, an interministerial body under the expenditure secretary that vets major central schemes before Cabinet approval, called for sharper targeting and more efficient use of funds. Its recommendation came after the commerce and textiles ministries sought close to ₹2 trillion over five years for the two schemes.
RoDTEP covers a wide range of sectors, including units in special economic zones and bonded warehouses, while RoSCTL is focused mainly on garments. The schemes are meant to keep exports zero-rated by refunding embedded central and state levies outside the GST system, such as those on fuel, electricity, stamp duty and mandi tax paid on inputs used in exported goods. Current refund rates range from 0.3% to about 4.7% of free-on-board value under RoDTEP, and 1.7% to 8.2% under RoSCTL.
**What it means for exporters**
At present, refund rates are recommended by a revenue department committee that studies official and industry data and stakeholder representations. The overhaul may shift this to a more precise, evidence-based method reflecting taxes actually paid. Exporters received ₹18,233 crore under RoDTEP and ₹10,100 crore under RoSCTL in FY26. The validity of both schemes was extended from 30 September to 31 December, pending a decision on a five-…
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