RoSCTL Scheme Extended to Support Textile Exports

The Ministry of Textiles has extended the Rebate of State and Central Taxes and Levies (RoSCTL) Scheme for exports of apparel, garments, and made-ups until 30th September 2026. The move aims to sustain India’s competitiveness in global textile markets by ensuring exporters are not burdened with embedded taxes and levies.

Overview of RoSCTL Scheme

The RoSCTL Scheme has been operational since 7th March 2019. It was introduced as a successor to the earlier Rebate of State Levies (RoSL) Scheme. Unlike RoSL, which covered only state taxes, RoSCTL provides reimbursement of both State and Central taxes and levies embedded in exported goods. This makes it a more comprehensive mechanism for export promotion in the textile sector.

Objective and Rationale

The primary objective of the scheme is to neutralise the impact of taxes and levies that are not refunded under any other mechanism. It works in addition to the Duty Drawback Scheme and ensures that Indian exporters of garments and made-ups remain competitive in international markets. By offsetting hidden costs, the scheme enhances export efficiency and encourages manufacturing growth.

Key Features of the Scheme

The rebate under RoSCTL is provided in the form of duty credit scrips, which are issued electronically through the Customs system. These e-scrips can be used to pay Basic Customs Duty on imports and are freely transferable. However, the transfer must be for the full amount, as partial transfers are not permitted. The validity of these e-scrips is one year from the date of issuance and remains unchanged even after transfer.

Important Facts for Exams

• RoSCTL Scheme was launched in 2019 as a successor to RoSL Scheme.
• It reimburses both State and Central taxes, unlike RoSL.
• Rebates are issued as transferable duty credit e-scrips.
• Implemented by the Department of Revenue under Ministry of Finance.

Eligibility and Implementation

The scheme is applicable to all exporters of garments, apparel, and made-ups manufactured in India, except those listed under the Denied Entity List of the Directorate General of Foreign Trade (DGFT). It is implemented by the Department of Revenue under the Ministry of Finance, ensuring smooth processing and electronic issuance of benefits to eligible exporters.