Government Likely to Extend Input Tax Remission Scheme for Exporters Beyond Sept 30:

Government Likely to Extend Input Tax Remission Scheme for Exporters Beyond Sept 30 The government plans to extend the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme beyond its September 30, 2025, end date, giving Indian exporters more certainty in uncertain global markets. "The scheme will definitely be extended for the main beneficiaries beyond September 30, 2025," a source said. The government typically extends it for short periods to keep track of spending and stay within budget limits. Key points:

• Budget for this program is Rs 18,000 crore for 2025-26, up from Rs 16,575 crore last year
• Since exports aren't growing rapidly due to global uncertainties, the program likely won't exceed its budget
• The RoDTEP scheme, which began in January 2021, refunds taxes paid on items used in making exported products, such as fuel for transportation and electricity for manufacturing

Who benefits?

• Most manufacturing sectors are included in the scheme
• Steel, pharmaceuticals, and chemicals are excluded
• It's uncertain if Special Economic Zones (SEZs) and Export Oriented Units (EOUs) will continue to be included

SEZ units and EOUs were only added to the scheme in March 2024, but their inclusion expired on December 31, 2024. It was recently extended back to February 5, 2025. Some exporters are unhappy with this difference in treatment. "It is unfair to treat SEZ exporters differently from other exporters," said one Delhi-based garments exporter. Exporters also want the scheme extended for five years instead of a few months at a time to help with long-term planning and pricing decisions. India's exports remained almost unchanged at $437.4 billion in 2024-25, compared to $437.1 billion the previous year. Global slowdown and new tariff threats from US President Donald Trump have made the export environment more unpredictable.