Rebate of State and Central Taxes and Levies (RoSCTL) Scheme

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Overview:

Recently, the Union Cabinet approved the continuation of Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) for export of Apparel/Garments and Made ups upto 31st March 2026.

About Rebate of State and Central Taxes and Levies (RoSCTL) Scheme

  • It aims to reimburse all embedded State and Central Taxes/Levies for exports of manufactured goods and garments.
  • It has been established as a successor for the old "Rebate of State Levies (RoSL) Scheme.
  • The difference between RoSL & RoSCTL Scheme is that under the RoSL Scheme, there was no benefit on the central tax and Levies. But in the RoSCTL scheme, the exporter will get rebate of both State and Central tax and Levies.
  • Objective: To compensate for the State and Central Taxes and Levies in addition to the Duty Drawback Scheme on export of apparel/ garments and Made-ups by way of rebate.
  • The rebate under the Scheme shall be in the form of duty credit scrips.
  • The scrips shall be issued electronically on the Customs system.
  • The duty credit scrips shall be used for payment of Basic Customs Duty on import of goods. These scrips shall be freely transferable.
  • The duty credit available in an e-scrip shall be transferred at a time for the entire amount in the said e-scrip to another person and transfer of the duty credit in part shall not be permitted.
  • Validity of e-scrip: The period of validity of the e-scrip, of one year from its creation, shall not change on account of transfer of the e-scrip.
  • Eligibility: All exporters of garments/Apparel and made-ups manufactured in India are eligible to take benefit under this scheme, except entities/ IECs under the Denied Entity List of the Directorate General of Foreign Trade (DGFT).
  • Implementing agency: It has been notified by the Ministry of Textiles. However, the scheme shall be implemented by the Department of Revenue.

Q1) What is the role of the Directorate General of Foreign Trade?

It is the agency of the Ministry of Commerce and Industry of the Government of India responsible for administering laws regarding foreign trade.

Source: Cabinet approves continuation of Scheme for Rebate of State and Central Taxes and Levies for export of Apparel/Garments