Extension of RoSCTL Scheme: Ministry of Commerce and Industry recently extended the “Scheme for Rebate of State and Central Taxes and Levies (RoSCTL)” till March 31, 2024.

Key Highlights:

• The Ministry has authorized the continuation of the RoSCTL scheme will be continued with the same rates as announced by the Ministry of Textiles for exports of apparel/garments and made-ups.
• Scheme has been extended in order to increase exports and generate employment in textile industry.

About RoSCTL Scheme:

• The RoSCTL Scheme was introduced by the Ministry of Textiles vide Notf. No. 14/26/2016-IT(VOL.II) dated 07.03.2019.
• The Scheme came into effect from 07.03.2019.
• The RoSL (Rebate of State Levies) scheme which was in operation before the introduction of GST in 2017 was replaced by the current Rebate of State and Central Taxes Levies (RoSCTL) scheme in March 2019.
• RoSCTL is a forward-looking and growth-oriented scheme.
• It has provided a stable and predictable policy regime, helping boost exports and employment.
• The scheme has also helped improve cost efficiency and the export competitiveness in the international market.
• It has promoted incubation of start-ups and entrepreneurs in the domain and also led to the large number of MSMEs joining the apparel export business

Difference between RoSL and RoSCTL:

• The difference between RoSL & RoSCTL Scheme is that under RoSL Scheme, there was no benefit on the central tax and Levies.
• But in the RoSCTL scheme, the exporter will get rebate of both State and Central tax and Levies.

Aim of the RoSCTL scheme:

• RoSCTL Scheme was launched with the aim to reimburse all embedded State and Central Taxes or Levies for exports of manufactured goods and garments.
• Importer-Exporter Codes (IECs) are required to apply for RoSCTL programme.
• It also seeks to enhance productivity in garment and made-up sectors as it rebates all the embedded State and Central Taxes & Levies.
• It further aims to compensate State and Central Taxes and Levies apart from the Duty Drawback Scheme on export of apparel or garments and Made-ups.

Rebates Under the RoSCTL Scheme:

• The RoSCTL scheme offers a rebate of both, State and Central taxes.

The lists of state taxes and levies that will be refunded under the RoSCTL scheme are –

• VAT on transportation fuel
• Mandi Tax
• Captive Tax
• Stamp Duty on all the export documents
• Embedded SGST which are paid on pesticides, fertilizers etc.
• Duty of electricity.

Which are governing regulatory bodies for the RoSCTL in India?

• RoSCTL scheme has been notified by the Ministry of Textiles. 
• However,the scheme shall be implemented by the Department of Revenue.