An Overview

The Rebate of State and Central Taxes and Levies (RoSCTL) Scheme is eligible for the export of apparels and made-ups only, i.e., Chapter 61, 62 & 63. The RoSCTL scheme is effected from 07.03.2019 to 31.03.2020 as per Para 4.01 (c) of FTP 2015-20. Due to the Covid-19 pandemic, the RoSCTL scheme has been extended till 31.03.2021.

Rebate of State and Central Taxes and Levies (RoSCTL) Scheme is a new scheme introduced by the Ministry of Commerce. Currently, RoSCTL scheme is only valid for garments and made-ups (i.e., Chapter 61, 62 & 63). Further, this scheme would be extended to all sectors.

The cabinet approved the RoSCTL Scheme to rebates all state and central taxes for garments and made-ups.

As per Public Notice No. 58/2015-20 Dated 29.01.2020, Merchandise Exports from India Scheme (MEIS) has also been withdrawn for Export items falling under Chapter- 61, 62 & 63, w.e.f, 07.03.2019.

Rebates under the RoSCTL scheme

The RoSCTL Scheme gives rebate of the state and central taxes. Please find below list of state taxes and levies that will be refunded along with List of central taxes and levies that will be refunded under the RoSCTL scheme DGFT.

  • The list of State taxes and levies that will be refunded:
  1. VAT on transportation fuel.
  2. Captive Power.
  3. Mandi Tax.
  4. Electricity Duty.
  5. Stamp Duty on all the Export Documents.
  6. SGST levied on inputs of production of cotton (raw) like fertilizers, pesticides.
  7. Any other kind of product purchases made from unregistered dealers.
  8. The material used for the transport sector and.
  9. The Coal used for production.
  • The list of Central taxes and levies that will be refunded:
  1. Central excise duty on fuel used in transportation
  2. Embedded CGST paid on inputs like pesticides, fertilizers.
  3. Any other material purchases from unregistered dealers.
  4. Inputs for the transport sector and
  5. CGST and compensation Cess on Coal used in the production of electricity.

The Ministry of textile (MoT) has announced an additional AD-HOC Incentive of 1% on Free-On-board Value (FOB).

How is the benefit given under the RoSCTL scheme?

Benefit under the new RoSCTL scheme along with additional ad-hoc incentive is given in the form of duty credit scrips same as MEIS scrips. The RoSCTL scrips will be freely transferable in nature.

RoSCTL licenses can be used for payment of Import duties or can be sold in the open market at a premium rate.

Documents required to apply for RoSCTL Scheme

Below documents are required, to process the online application for RoSCTL scheme:

  • Shipping Bill Copy
  • DGFT Digital Signature
  • Valid RCMC (Registration Cum Membership Certificate)
  • RoSCTL Licenses will be valid for 24 months from the date of issue.

Some Important Points to note about RoSCTL scheme

  • The rebate under the RoSCTL scheme is allowed subject to the condition that foreign remittance for the shipment made will be realized in stipulated time frame as per FEMA.
  • If the sales proceeds are not realized within time allowed, then all the RoSCTL scheme benefits must be returned with 15% annual interest.
  • All the original export documents along with shipping bills are required to be maintained by the exporter for a period of 3 years from the date of issuance of RoSCTL scrips.
  • If the applicant fails to submit all the original documents asked by the licensing authority, then he/she will be liable to return entire benefit with applicable interest.

How can we help you in claiming benefits under the RoSCTL scheme?

We help our clients in the preparation of documents in providing hassle-free services.

  • Prepare and submit online applications to obtain the License under the RoSCTL scheme.
  • Registration of the License done in custom from our office.
  • We also assist in the selling of licenses, provide help in documentation for the transfer of a license to the buyer.
  • Also, do the online transfer by recording the details on the DGFT website.

Consult our clients about the benefits they can avail of on their products and the country in which they export.

Recent Updates

  • Public Notice No. 58/ 2015-2020 DT. 29.01.2020
    The above public notice is for withdrawal of MEIS for items in the apparels and made-ups sector, amendment in Para 4.95 (HBP) 2015-20, and revision of the ANF- 4R for Implementation of RoSCTL Scheme.
  • Public Notice No. 83/ 2015-2020 DT. 29.03.2019
    As notified by the ministry of textile for issuance of scrip for RoSCTL, Additional provision under Hand book of procedures for implementation of the RoSCTL
  • Notification No. 14/26/2016-IT DT. 08.03.2019
    The notification is for rebate of state and central Embedded Taxes and Levies
Contact Us