Industry Odisha Bureau, Oct 21: Two government panels will review the RoDTEP and RoSCTL tax refund schemes for exporters. The overhaul follows ministry requests for nearly ₹2 trillion over five years.
The government has formed two panels to overhaul key tax refund schemes for exporters. The aim is better-targeted payouts and smarter use of funds, Mint reported.
The step follows a recommendation by the Expenditure Finance Committee (EFC) late last month. This interministerial body vets major central schemes before Cabinet clearance. The commerce and textiles ministries had sought nearly ₹2 trillion for five years. The commerce ministry wants over ₹1.3 trillion for RoDTEP, up 70% on the previous period. The textiles ministry seeks about ₹65,000 crore for RoSCTL, roughly 50% more. These are requests, not approved spending.
RoDTEP stands for Remission of Duties and Taxes on Exported Products. It spans many sectors, including special economic zones. RoSCTL, the Rebate of State and Central Taxes and Levies, largely serves garment exporters. Both aim to keep exports “zero-rated”, meaning free of embedded domestic taxes. They refund levies outside the goods and services tax (GST), paid on inputs. Examples include taxes on fuel and electricity, stamp duty and mandi tax.
RoDTEP refunds range from 0.3% to about 4.7% of free-on-board export value. RoSCTL rates run from 1.7% to 8.2%, depending on the product. In the year to March 2026, exporters received ₹18,233 crore under RoDTEP. RoSCTL payouts totalled ₹10,100 crore. Both ministries say the schemes comply with World Trade Organization rules.
Director General of Foreign Trade Lav Agarwal heads the RoDTEP panel. Arti Kanwar, additional secretary in the textiles ministry, leads the RoSCTL review. Both include senior officials and industry executives. Their findings may feed into upcoming Union budget deliberations.
Currently, a revenue department committee recommends refund rates using official and industry data. That system may shift towards evidence-based rates reflecting taxes actually paid.
D.K. Nair, former secretary-general of the Confederation of Indian Textile Industry, sees hurdles. He said tracking every tax across many production stages is very difficult. Textiles and garments are especially dispersed, he noted. “Some level of averaging of levies is inevitable,” he said.
The schemes were extended last month to December 31, from September 30. A five-year extension decision is still pending. Ajay Sahai of the Federation of Indian Export Organisations has stressed policy stability. He told Mint last month that adequate five-year funding would be “extremely important”. Timely refunds free up cash otherwise locked in taxes.
Exporters face headwinds from the West Asia and Ukraine wars and US tariff uncertainty. Merchandise exports still rose 18.5% to $260 billion in the first half of FY27. Textile and garment exports grew just about 2.4%. India’s trade deals with the UAE, UK and EU could lift shipments once West Asia calms.
The panels must tighten spending without weakening support exporters rely on. Precise, predictable refunds could serve both goals.

