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Government mulls extending RoSCTL scheme for textiles
The government considers extending the tenure of the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for the textile sector beyond September 30. RoSCTL is an export incentive framework for apparel / garments and made-ups, and the possible extension keeps the scheme in current focus.
Rebate of State and Central Taxes and Levies Scheme:
| Dimension | Key Details |
|---|---|
| Nodal ministry | The scheme is introduced by the Ministry of Textiles in March 2019. |
| Objective | The scheme provides for compensating 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. |
| Coverage | The scheme applies to exports of apparel/garments and made-ups. |
| Successor scheme | The scheme has been established as a successor to the “Rebate of State Levies (RoSL) Scheme.” |
| RoSL vs RoSCTL | Under RoSL, there is no benefit on central taxes and levies, while under RoSCTL, the exporter gets a rebate of both State and Central taxes and levies. |
| Benefit instrument | The scheme provides for transferable and sellable duty credit scrips to exporters based on the Free on-board (FOB) value of their exports. |
| Issuance mode | The scrips are issued electronically on the Customs system. |
| Permitted use | The duty credit scrips are used for payment of Basic Customs Duty on the import of goods. |
| Transfer rule | The duty credit available in an e-scrip is transferred at a time for the entire amount, and transfer in part is not permitted. |
| Validity | The e-scrip validity is 1 year from its creation, and the period of validity does not change on account of transfer of the e-scrip. |
| Eligibility | All exporters of garments/apparel and made-ups manufactured in India are eligible, except entities or IECs under the Denied Entity List of the Directorate General of Foreign Trade (DGFT). |
| Implementing agency | The scheme is implemented by the Department of Revenue, Ministry of Finance. |