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

The Rebate of State and Central Taxes and Levies (RoSCTL) scheme is a vital export incentive program introduced by the Government of India to promote the growth of the textile and apparel industry. The scheme offers a refund on state and central taxes and levies that are not covered under the GST regime but are still incurred during the production process. By reducing the overall production costs, RoSCTL helps Indian exporters stay competitive in the global market.

Import Export Code Illustration

What is RoSCTL?

The RoSCTL scheme focuses on providing rebates for unrefunded taxes like VAT on fuel, electricity duties, mandi tax, and other state and central levies that textile and apparel exporters face. This initiative boosts the profitability of exporters by reducing their input costs through duty credit scrips.

Key Features of RoSCTL

Rebate on State and Central Taxes

Refund of unclaimed taxes and levies incurred in the production of textiles and apparel.

Duty Credit Scrips

Exporters receive duty credit scrips as compensation, which can be used to pay customs duties or sold in the market.

Wide Applicability

The scheme is designed for exporters in the garments, made-ups, and fabric sectors.

How Does RoSCTL Benefit Exporters?

Reduced Production Costs

RoSCTL refunds taxes that are not reimbursed under GST, directly lowering the cost of manufacturing for exporters.

Enhanced Competitiveness

The scheme helps exporters offer better prices in international markets by offsetting tax burdens.

Improved Profit Margins

By claiming tax refunds, exporters can increase their overall profit margins.

Who is Eligible for RoSCTL?

Exporters from the textile, garment, and home textile sectors can apply for the RoSCTL scheme. The scheme applies to exports made under valid Export Promotion schemes approved by the DGFT.