RoDTEP Scheme 2026 – Complete Guide for Indian Exporters

A new GST-DGFT integration is coming in July 2026. If you file RoDTEP claims, this guide is essential for you. Understand what has changed, what you need to do, and how to keep your money safe.

What is the RoDTEP Scheme?

RoDTEP stands for Remission of Duties and Taxes on Exported Products.

When you export goods from India, you pay various taxes and duties during production — state taxes, electricity duty, mandi cess, fuel surcharge, and more. These costs get added to the export price and make Indian products more expensive in global markets.

The RoDTEP scheme refunds these taxes.

Simply put: the government returns the taxes that exporters paid during production. This makes Indian products more competitive in international markets.

RoDTEP replaced the earlier MEIS (Merchandise Exports from India Scheme), which was found to be in violation of WTO rules. RoDTEP is a fully WTO-compliant scheme.

What is Changing in RoDTEP from July 2026?

This is the most important update you need to understand.

DGFT issued Notification No. 12/2026 on May 5, 2026. According to this notification:

GST-DGFT Auto-Verification System

From July 1, 2026, the RoDTEP reimbursement system will be directly linked to your GST returns.

This means:

• The export value declared in your Shipping Bill
• The export invoice value in your GSTR-1
• The tax payment recorded in your GSTR-3B

All three will be automatically matched. If any mismatch is found, the claim will be auto-rejected.

Phased Rollout

As of May 2026, this system is live in testing for 12 product categories. By July 2026, it will apply to all eligible exports.

15-Day Window

If the system detects a mismatch, you will have only 15 days to reconcile. After that, the claim may be frozen.

Why Does This Matter?

Here is a real example:

A textile exporter filed a RoDTEP claim of ₹2.3 crore. However, the export turnover in GSTR-1 was underreported by ₹47 lakh. The result? Claim frozen. A 90-day delay in cash flow. Plus interest on working capital.

This is not an isolated case. Many exporters handle GST filing and shipping documentation through separate departments. Mismatches are common.

From July onwards, the system will automatically detect these errors.

What Are the RoDTEP Rates?

RoDTEP rates vary by product category. Some common categories:

| Product Category | Approximate RoDTEP Rate |
|---|---|
| Readymade Garments (Cotton) | 1.3% – 1.7% |
| Engineering Goods | 0.5% – 1.0% |
| Pharmaceuticals | 0.5% – 1.5% |
| Chemicals | 0.3% – 0.9% |
| Rice / Agri Products | 0.5% – 2.5% |
| Leather Products | 0.5% – 1.3% |

Check exact rates for your HS Code on the DGFT website. Rates are revised periodically.

How Does a RoDTEP Claim Work? Step by Step

Step 1 – Declaration in Shipping Bill

At the time of export, you must select the RoDTEP option in the shipping bill. If you do not declare it at this stage, you cannot claim it later.

Step 2 – Processing on ICEGATE

After export, your shipping bill is processed on ICEGATE (the Customs portal). The RoDTEP amount is automatically calculated based on your HS Code and declared value.

Step 3 – Scroll Generation

The RoDTEP amount is credited in the form of a scroll — a transferable scrip that you can:

• Use directly for customs duty payment
• Transfer to the duty paid ledger and receive the cash equivalent

Step 4 – GST Verification (From July 2026)

From July onwards, before Step 3, your shipping bill will be automatically verified against your GSTR-1. Only matching exports will receive the scroll.

What Should You Do Before July 2026?

Complete this checklist now — do not wait:

1. Reconcile Your GSTR-1 and Shipping Bills

Review all exports from the past 12 months. Does your invoice value in GSTR-1 match the shipping bill value? If not, file an amendment immediately.

2. Verify Your HSN Codes

The HSN code in your GSTR-1 must match the one in your shipping bill. Any mismatch can lead to claim rejection.

3. Inform Your CA or Compliance Team

If your GST filing and export documentation are handled by different people, bring them together now and complete a full reconciliation.

4. Fix Your Process for Future Exports

Create an internal checklist so that after every shipment, the shipping bill and GST invoice are matched on the same day.

Advantages of RoDTEP

• WTO-compliant scheme — secure for the long term
• No separate application process — automatically triggered from the shipping bill
• Scrip is transferable — you can sell it to other importers if you do not need it
• Equally accessible for MSMEs
• Improves cash flow by refunding input taxes

Common Mistakes That Get RoDTEP Claims Rejected

Mistake 1: Not Declaring RoDTEP in the Shipping Bill

This is the most basic mistake. You must declare it at the time of export — it cannot be added later.

Mistake 2: Filing Export Invoices Late in GSTR-1

If your shipment date is in October but you file GSTR-1 in December, the auto-verification system will flag a mismatch.

Mistake 3: Invoice Value Difference

FOB value in the shipping bill differs from the value in GSTR-1 — this is a common issue, especially when there is confusion about including or excluding freight charges.

Mistake 4: Wrong HS Code

Even a single digit error can change your RoDTEP rate or result in a rejected claim.

RoDTEP vs MEIS — What is the Difference?

| Parameter | MEIS (Old) | RoDTEP (Current) |
|---|---|---|
| WTO Compliance | No (considered a subsidy) | Yes (refund basis) |
| Benefit Type | Export subsidy | Tax remission |
| Application Process | Manual application | Automatic (shipping bill based) |
| Benefit Rate | Higher (3–7%) | Lower but compliant (0.3–2.5%) |
| Current Status | Discontinued | Active (July 2026 update coming) |

Frequently Asked Questions

Q: Is RoDTEP available on all products?

No. Some products are excluded — such as exports from Special Economic Zones (SEZ), Export Oriented Units (EOU), and certain specific categories. Check the latest DGFT notification for details.

Q: What should I do if my claim is rejected?

ICEGATE has a grievance portal. Check the rejection reason, correct your documents, and reapply. From July 2026 onwards, you will also have a 15-day window to reconcile before the claim is frozen.

Q: When does a RoDTEP scroll expire?

A RoDTEP scroll is valid for 1 year from the date of issuance. Make sure to use or transfer it before it expires.

Q: Can a merchant exporter claim RoDTEP?

Yes. Merchant exporters are eligible for RoDTEP — provided they are exporting in their own name and the IEC belongs to them.

Conclusion

RoDTEP is an important financial benefit for Indian exporters. The July 2026 update will make the system stricter — but for exporters who are properly compliant, it will also become faster and more automatic.

Key action: Reconcile your GSTR-1 and shipping bills right now. Do not wait for July.

Exporters who do not act before July 2026 will face cash flow delays, frozen claims, and compliance issues.

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