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News: The Ministry of Textiles has extended the Rebate of State and Central Taxes and Levies Scheme (RoSCTL) for apparel exports and continued the Remission of Duties and Taxes on Exported Products Scheme (RoDTEP) till 30 September 2026.
About Rebate of State and Central Taxes and Levies (RoSCTL) Scheme
- It is a scheme to rebate all embedded State and Central taxes and levies not covered under any other scheme to enhance the global competitiveness of India’s apparel and made-up exports.
- It has replaced the previous “Rebate of State Levies (RoSL) Scheme.”
- It is operational from 7th March 2019.
- Launched by: It was launched by the Ministry of Textiles.
- Implementing agency: It is being implemented by the Department of Revenue, Ministry of Finance.
- Objective of the scheme: Its objective is 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.
- It is based on the principle of zero-rating of exports, ensuring remission of unrefunded taxes embedded in exported products.
- Features
- Beneficiary Eligibility: All exporters of garments, apparel, and made-ups manufactured in India can get benefits under the RoSCTL scheme
- Those exporters whose Importer -Exporter Code (IEC) is in the DGFT Denied Entity List are not eligible.
- Eligible exporters under RoSCTL cannot claim RoDTEP benefits.
- Mechanism: The rebate under the scheme shall be given to the exporter in the form of duty credit scrips, which will be maintained in the electronic duty credit ledger.
- The scrips shall be issued electronically on the Customs automated system.
- Transferable: The scrips is used for payment of basic customs duty only and is transferable to any other person.
- 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. Partial transfer is not allowed. - Validity of the 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.
About the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme
- Launched in: It was launched in 2021 and has been extended till September 30, 2026.
- It replaced the Merchandise Export Incentive Scheme (MEIS).
- Launched by: It was launched by the Department of Commerce, Ministry of Commerce and Industry.
- Implementing agency: It is being implemented by the Department of Revenue, Ministry of Finance.
- Objective: It is to provide refunds on taxes, duties, and levies incurred by exporters during manufacturing and distribution.
- Features:
- Beneficiary eligibility: Both manufacturer and merchant exporters (traders) are eligible to avail benefits under the RoDTEP scheme.
- Special Economic Zone Units are also eligible to claim the benefits under this Scheme.
- Coverage: It covers all sectors, with priority given to labour-intensive sectors.
- It is also applicable to goods exported through courier via e-commerce platforms.
- Mechanism: The refund will be provided as transferable electronic scrips, and these duty credits will be recorded and monitored through an electronic ledger.
- Its benefit cannot be claimed for services exported outside India.
- Re-exported products are not eligible under the scheme.
- Refund range: Refunds under the scheme range from 0.3 per cent to 3.9 per cent.
