Rebate of State and Central Taxes and Levies (RoSCTL) Scheme
Why in News?
The Rebate of State and Central Taxes and Levies (RoSCTL) Scheme is in the news because on April 1–2, 2026, the Ministry of Textiles officially announced its extension until September 30, 2026. This move provides critical continuity and stability for India’s apparel and textile exporters amidst global demand uncertainties.
About
- Policy Continuity: The extension was granted without any changes to existing guidelines, rates, or eligibility criteria, ensuring a stable regime for long-term trade planning.
- Parallel RoDTEP Support: Alongside RoSCTL, the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme was also continued for the same period to cover textile products not included in RoSCTL.
- Support for MSMEs: The extension is particularly aimed at supporting Micro, Small, and Medium Enterprises (MSMEs), which form a major share of beneficiaries in this labour-intensive sector.
Key Information
- Primary Objective: To reimburse embedded State and Central taxes and levies that are not otherwise refunded (via GST), ensuring that "taxes and duties are not exported".
- Product Scope: Specifically applies to exporters of Garments/Apparel (HSN Chapters 61 & 62) and Made-ups like bed linens and curtains (HSN Chapter 63).
Rebate Mechanism (Duty Credit Scrips)
- Electronic Issuance: Rebates are issued as transferable duty credit e-scrips through the Customs (ICEGATE) system.
- Usage: These scrips can be used to pay Basic Customs Duty on the import of equipment, machinery, or raw materials.
- Transferability: Scrips are freely tradable, allowing exporters to sell them to other importers for immediate liquidity, though they must be transferred in full amount.
- Validity: E-scrips are valid for one year from the date of creation.
Refunded Taxes Include
- State Levies: VAT on fuel used for transport, electricity duty, mandi tax, and stamp duty on export documents.
- Central Levies: Central excise duty on fuel, CGST on inputs like fertilisers, and compensation cess on coal used for power.
Implementation
- Agencies: Notified by the Ministry of Textiles and implemented by the Department of Revenue under the Ministry of Finance.
- Compliance: Exporters must maintain original documents for 3 years and ensure foreign remittance is realized within the timeframe allowed under FEMA.
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