RoSCTL Scheme

Recently, the Ministry of Textiles extended the Rebate of State and Central Taxes and Levies (RoSCTL) Scheme for exports of apparel, garments, and made-ups up to 30th September 2026. The extension has been announced to continue supporting India’s textile export sector and improve the global competitiveness of Indian products.

About the RoSCTL Scheme

The Rebate of State and Central Taxes and Levies (RoSCTL) Scheme was launched on 7th March 2019. It was introduced to reimburse various hidden or embedded State and Central taxes and levies that are incurred during the manufacturing and export of textile products but are not refunded through other mechanisms.

The scheme mainly benefits exporters of:

• Apparel and garments

• Made-up textile articles such as bedsheets, towels, and curtains

The RoSCTL Scheme replaced the earlier Rebate of State Levies (RoSL) Scheme.

The major improvement under the RoSCTL Scheme is that it provides rebates for both State and Central taxes and levies, whereas the earlier RoSL Scheme covered only State levies.

Objective of the Scheme

The primary objective of the RoSCTL Scheme is to reduce the tax burden on textile exporters and make Indian textile products more competitive in international markets.

The scheme compensates exporters for taxes and levies that are not refunded under other export incentive mechanisms, including the Duty Drawback Scheme. By lowering export costs, the scheme aims to boost textile exports, generate employment, and strengthen India’s position in the global textile industry.The scheme supports the labour-intensive textile sector, which is one of the largest employment-generating sectors in India.

Features of the RoSCTL Scheme

Under the RoSCTL Scheme, the rebate is provided in the form of duty credit scrips. These scrips are issued electronically through the Customs system, making the process transparent and efficient.

The duty credit scrips can be used for payment of Basic Customs Duty on imported goods. Another important feature of the scheme is that these scrips are freely transferable, allowing exporters flexibility in their usage.

However, the transfer of the e-scrip must take place for the entire amount available in the scrip, as partial transfer is not permitted.

The validity period of an e-scrip is one year from the date of its creation. This validity remains unchanged even if the scrip is transferred to another person.

The electronic duty credit scrip system promotes ease of doing business and reduces procedural delays for exporters.

Eligibility Under the Scheme

All exporters of garments, apparel, and made-ups manufactured in India are eligible to avail benefits under the scheme.

However, exporters or entities listed under the Denied Entity List of the Directorate General of Foreign Trade (DGFT) are not eligible to receive benefits.

Implementing Agency

The RoSCTL Scheme is implemented by the Department of Revenue under the Ministry of Finance.

Significance of the RoSCTL Scheme

The RoSCTL Scheme plays a significant role in promoting India’s textile exports. By reimbursing hidden taxes and levies, it reduces the overall cost of exports and helps Indian products remain competitive in global markets.

The scheme is especially important because the textile and garment sector is highly labour-intensive and provides employment to millions of people, particularly women workers.