- Why in news
- On 30 September 2026, the Department of Commerce issued Notification No. 41/2026-27 extending the RoDTEP Scheme up to 31 December 2026 (release dated 2 October 2026).
- What it is
- RoDTEP (Remission of Duties and Taxes on Exported Products) refunds embedded central, state and local duties and taxes on exports that are not refunded under any other mechanism. It replaced the earlier MEIS for the affected goods and was designed to be compatible with WTO rules. Rates are notified by product in an Appendix, and exporters get the refund as transferable duty credit or electronic scrip.
- Extension
- The scheme is extended up to 31 December 2026 by a Department of Commerce notification.
- What it refunds
- It refunds embedded, un-rebated central, state and local duties, taxes and levies, including prior-stage cumulative indirect taxes.
- Rates and caps
- Rates and value caps in Appendix 4R and Appendix 4RE as on 30 September 2026 continue unchanged.
- Eligible units
- DTA units, Advance Authorisation holders, SEZ units and EOUs can claim it.
- Aim
- It aims to give exporters a level playing field against competing economies.
- Predecessor
- RoDTEP replaced the MEIS (Merchandise Exports from India Scheme) from January 2021.
Don’t confuse with RoDTEP vs MEIS: MEIS was a reward-based export incentive; RoDTEP refunds actual embedded taxes.
Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.
Why it matters
- Keeps exporters' costs lower by returning embedded taxes, helping them compete globally.
- Continuity of rates gives exporters certainty.
Problems
- Only a short extension, so long-term planning is hard.
- Delays in scrip issue and rate disputes can strain exporter cash flow.
Way forward
- Give a longer, predictable term and review rates regularly with sector data.
- Speed up claim processing and digital scrip issue.
Put in your answer
Level playing field: The government states the extension aims to give exporters a level playing field against competing economies.
Predecessor: RoDTEP replaced MEIS, moving from a reward model to refunds of embedded taxes.
- 2026Mains GS3 · Q14Types of agricultural subsidies in India and related WTO Agreement on Agriculture issues.
- 2023Mains GS3 · Q14Direct and indirect farm subsidies in India and WTO concerns about them.
- 2019Mains GS3 · Q1Indirect taxes subsumed in GST and its revenue implications since 2017.
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Statements
Ours, not from a UPSC paper
Consider the following statements:
- 1.The RoDTEP Scheme refunds central, state and local duties and taxes embedded in exported products that are not otherwise rebated.
- 2.Under the latest extension, exports by Special Economic Zone units and Export Oriented Units are eligible for RoDTEP.
- 3.The latest extension of the RoDTEP Scheme raises the existing rates and value caps for all products.
Which of the statements given above is/are correct?
True or false?
1 of 6
Statements the way Prelims prints them. Say first, then see the fact.
1.The RoDTEP Scheme refunds central, state and local duties and taxes embedded in exported products that are not otherwise rebated.
True. It refunds embedded, un-rebated central, state and local duties, taxes and levies.
2.Under the extension, exports by SEZ units and Export Oriented Units are eligible for RoDTEP.
True. DTA units, AA holders, SEZ units and EOUs are covered.
3.The extension raises the RoDTEP rates and value caps for all products.
False. Existing rates and value caps continue unchanged.
4.RoDTEP replaced the Merchandise Exports from India Scheme (MEIS) for the goods it covers.
True. RoDTEP replaced MEIS from January 2021.
5.RoDTEP is a Central Sector Scheme under which refunds are paid in cash by state governments.
False. The refund is issued by the Centre as transferable electronic duty credit scrip, not as cash from states.
6.The scheme is intended to be compatible with WTO rules by returning only taxes that are not otherwise refunded.
True. RoDTEP was designed as WTO-compatible, as it refunds only un-rebated embedded taxes.
Written by us from the release, not by UPSC; checked by a second model.
Worth revising until Prelims 2028: most news questions come within two years of the event.