The RoSCTL scheme provides rebates on embedded state and central taxes for eligible apparel and made-up exporters through transferable duty credit scrips. Learn how the scheme works, who is eligible, how to claim benefits, and how it supports textile exporters.
In summary
- The RoSCTL (Rebate of State and Central Taxes and Levies) scheme helps eligible exporters of garments and made-ups recover embedded taxes and levies that are not refunded through other mechanisms.
- The rebate is issued in the form of transferable duty credit scrips, helping exporters reduce costs and improve cash flow.
- Eligible exporters can claim benefits by declaring the applicable scheme while filing shipping bills and complying with customs requirements.
- The scheme complements other export incentive programmes and supports India's textile exports in international markets.
- This page explains the RoSCTL scheme, eligibility, benefits, duty credit scrips, comparison with RoDTEP and Duty Drawback, and the claim process.
What is the RoSCTL scheme?
The Rebate of State and Central Taxes and Levies (RoSCTL) scheme is an export incentive introduced by the Government of India for exporters of apparel and made-up textile products. The scheme reimburses certain embedded state and central taxes and levies that are not refunded through any other mechanism.
Instead of providing a cash reimbursement, the rebate is issued as transferable duty credit scrips. These scrips can be used to pay eligible customs duties or transferred to another importer in accordance with applicable government guidelines.
The objective of the scheme is to reduce the overall cost of exports and improve the competitiveness of Indian textile products in global markets.
RoSCTL full form and meaning
RoSCTL stands for Rebate of State and Central Taxes and Levies. The scheme was introduced to replace the earlier Rebate of State Levies (RoSL) scheme for the apparel and made-up sectors. While the earlier scheme covered only certain state levies, RoSCTL provides rebates for eligible state as well as central taxes and levies that remain embedded in exported products.
The rebate rates are notified by the Government of India and vary depending on the product classification under the applicable tariff schedule.
What are the objectives of the RoSCTL scheme?
The RoSCTL scheme aims to strengthen India's textile exports by reducing the tax burden on exporters. Its key objectives include:
- Refund embedded state and central taxes that are not otherwise reimbursed.
- Improve the international price competitiveness of Indian garments and made-up textile products.
- Encourage higher exports from India's labour-intensive textile sector.
- Support employment generation across textile manufacturing and allied industries.
- Ensure exporters are not disadvantaged due to domestic taxes embedded in production costs.
- Promote sustainable growth of India's apparel export industry.
By reducing unrecovered taxes, the scheme enables exporters to price their products more competitively in overseas markets.
Who is eligible under the RoSCTL scheme?
The scheme is available only for specified textile export categories notified by the Government of India.
Generally, eligible applicants include:
- Exporters of ready-made garments covered under notified tariff headings.
- Exporters of made-up textile articles notified under the scheme.
- Manufacturer exporters.
- Merchant exporters exporting eligible products.
- Businesses exporting products through valid customs procedures.
- Exporters complying with Directorate General of Foreign Trade (DGFT) and Customs requirements.
Exporters must ensure that the exported products fall under the notified tariff lines eligible for RoSCTL benefits. Products outside the notified categories cannot claim rebates under this scheme.
How do RoSCTL rebates work through duty credit scrips?
RoSCTL benefits are provided in the form of electronic duty credit scrips rather than direct cash payments. These scrips represent the rebate amount calculated using government-notified rates.
The process typically works as follows:
- The exporter files the shipping bill while selecting the applicable RoSCTL option.
- Customs verifies the export documentation and product eligibility.
- The rebate amount is calculated based on notified rates.
- Electronic duty credit scrips are generated after successful processing.
- The exporter can use these scrips to pay eligible customs duties or transfer them to another eligible entity, subject to prevailing regulations.
Since the benefit is linked to export documentation, accurate declarations and compliance with customs procedures are essential for successful claims.
How does RoSCTL compare with RoDTEP and Duty Drawback?
| Feature | RoSCTL | RoDTEP | Duty drawback |
|---|---|---|---|
| Full form | Rebate of State and Central Taxes and Levies | Remission of Duties and Taxes on Exported Products | Duty Drawback scheme |
| Primary objective | Refund embedded taxes for apparel and made-up exports | Refund embedded taxes across notified export products | Refund customs and excise duties paid on imported inputs |
| Eligible sectors | Apparel and made-up textile exports | Multiple export sectors notified by the Government | Various eligible export products |
| Benefit type | Electronic duty credit scrip | Electronic duty credit | Refund or drawback amount |
| Administered by | DGFT and Customs | DGFT and Customs | Customs authorities |
| Product coverage | Limited notified textile products | Wider notified export products | Eligible imported input-based exports |
Although all three schemes support exporters, each serves a different purpose and applies to different product categories and tax structures.
How to claim benefits under the RoSCTL scheme
Eligible exporters can claim RoSCTL benefits by declaring the scheme at the time of filing export documents and completing the prescribed customs process. Once the claim is processed, the rebate is issued as transferable duty credit scrips that can be used to pay eligible customs duties or transferred to another importer.
Step 1: Ensure your exports are eligible
Confirm that the products you are exporting are covered under the notified RoSCTL schedule. The scheme primarily applies to eligible apparel and made-up textile products exported from India.
Step 2: File the shipping bill with the RoSCTL declaration
While filing your shipping bill through the customs system, select the RoSCTL benefit wherever applicable. Ensure that all export details, product classification, and supporting information are accurate to avoid delays.
Step 3: Complete customs clearance
Once your shipment clears customs and export formalities are completed, the customs authorities verify the claim based on the shipping bill and notified rebate rates.
Step 4: Receive duty credit scrips
After successful verification, the eligible rebate is issued in the form of duty credit scrips. The rebate amount depends on the notified rate applicable to the exported product.
Step 5: Use or transfer the duty credit scrip
You can use the duty credit scrip to pay eligible customs duties on future imports. Since the scrips are transferable, they may also be sold or transferred to another importer, subject to the applicable rules.
Exporters should retain shipping bills, invoices, customs documents, and other supporting records for future verification or audit purposes.
What are the latest updates on the RoSCTL scheme?
The Government of India has extended the RoSCTL scheme multiple times to continue supporting India's textile exports and maintain their competitiveness in global markets. Exporters should regularly check notifications issued by the Ministry of Textiles and the Directorate General of Foreign Trade (DGFT) for the latest validity period, eligible product lists, and procedural updates.
Key developments include:
- The scheme continues to support exporters of garments and made-up textile articles.
- Rebate rates are notified by the government and may be revised periodically.
- Claims continue to be processed through the customs electronic system.
- Exporters should monitor official notifications for changes in coverage, timelines, or operational guidelines.
- Compliance with customs documentation and export procedures remains essential for claiming benefits.
Since government incentive schemes are periodically reviewed, checking the latest notifications before filing claims helps avoid errors and delays.
How does the RoSCTL scheme help textile exporters stay competitive?
The RoSCTL scheme improves the competitiveness of Indian textile exporters by reducing the burden of embedded taxes and levies that are not refunded through other mechanisms. Lower export costs enable businesses to price their products more competitively in international markets.
Some of the key advantages include:
- Reduces the overall cost of exporting apparel and made-up textile products.
- Improves profit margins by reimbursing eligible embedded taxes.
- Enhances cash flow through duty credit scrips.
- Supports employment-intensive sectors such as garment manufacturing.
- Encourages higher export volumes and expansion into new overseas markets.
- Strengthens India's competitiveness against other textile-exporting countries.
Many exporters also combine government export incentive schemes with other financial products to finance inventory, manufacturing, and working capital requirements while waiting for export proceeds.
Conclusion
The RoSCTL scheme is an important export incentive for India's apparel and made-up textile sector, helping exporters recover embedded taxes that are otherwise not refunded. By issuing transferable duty credit scrips, the scheme reduces export costs, improves cash flow, and enhances global competitiveness for textile businesses.
Exporters should understand the eligibility criteria, maintain proper export documentation, and stay updated with government notifications to maximise the benefits available under the scheme. Businesses looking to expand production or manage export-related working capital can also explore business loans, compare the applicable business loan interest rate, and estimate repayments using a business loan EMI calculator before choosing a suitable financing option.
