Context
The RoSCTL scheme, introduced in March 2019, is in focus over its continuation as an export support measure for India’s apparel, garments and made-ups sector by refunding taxes and levies that remain embedded in production costs.
About RoSCTL
- Objective: Rebates eligible un-refunded State and Central taxes and levies embedded in the manufacture of exported apparel, garments and made-ups.
- Successor to RoSL: It replaced the Rebate of State Levies (RoSL) Scheme, expanding the coverage from mainly State levies to both State and Central taxes and levies.
- Ministry: Introduced by the Ministry of Textiles.
- Implementation: Implemented by the Department of Revenue, Ministry of Finance.
- It operates alongside the Duty Drawback Scheme to ensure domestic taxes are not embedded in export costs
Key Features
- Duty Credit E-Scrips: Provides transferable and sellable e-scrips based on the Free on Board (FOB) value of exports.
- Electronic Issue: E-scrips are issued through the Customs system and can be used to pay Basic Customs Duty (BCD) on imports.
- Transfer & Validity: The entire credit can be transferred to another person, but partial transfer is not allowed. Each e-scrip is valid for one year from its creation.
- Eligibility: Covers exporters of garments/apparel and made-ups manufactured in India, except entities listed under the Denied Entity List of the Directorate General of Foreign Trade (DGFT).
Significance
- Lowers Export Costs: Rebates taxes not recovered through GST or duty drawback, reducing the tax burden on exporters.
- Boosts Competitiveness: Helps Indian apparel and made-up products compete in global markets by reducing embedded taxes.
- Supports Employment: Strengthens the labour-intensive textile sector and its export potential.
- Prevents Tax Exportation: Ensures domestic taxes and levies are not embedded in export prices.
FAQs
Q1. What is the RoSCTL Scheme?
Ans: It is an export incentive scheme that rebates eligible State and Central taxes and levies embedded in exported apparel, garments and made-ups.
Q2. Which Ministry introduced RoSCTL?
Ans: The scheme was introduced by the Ministry of Textiles.
Q3. How is RoSCTL different from RoSL?
Ans: RoSL covered State levies, while RoSCTL provides rebates covering eligible State and Central taxes and levies.
