Government Extends RoSCTL Scheme for Exports of Apparel and Made-ups

Recently, the government extended the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for the export of apparel, garments, and ‘made-ups’ until September 30, or until approval is received under the 16th Finance Commission cycle, whichever comes first.

Other Related Information

¨     In parallel, the government has also continued the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme from April 1, 2026, to September 30, 2026. This benefits textile products that do not fall under the ambit of RoSCTL.

About the RoSCTL Scheme

¨     This is a Central Government scheme aimed at providing a rebate on all embedded State and Central taxes and levies that are not covered under any other scheme. Its objective is to enhance the global competitiveness of Indian apparel and made-ups exports.

¨     It is based on the principle of 'zero-rating' of exports, ensuring the remission of non-reimbursable taxes embedded in exported products.

¨     It serves as a key support mechanism for the textile export sector, particularly benefiting MSME exporters, who constitute a significant portion of its beneficiaries.

¨     It was launched by the Ministry of Textiles in the year 2019.

¨     Implementing Agency: Department of Revenue, Ministry of Finance.

¨     Under the scheme, exporters are issued ‘Duty Credit Scrips’ reflecting the value of the taxes and levies embedded in the exported products. These can be utilized to pay ‘Basic Customs Duty’ on the import of equipment, machinery, or other inputs.

¨     For the calculation of duty credit under the scheme, the value of the goods shall be considered as the declared export ‘Free on Board’ (FOB) value or 1.5 times the market value of the goods, whichever is lower.