Cabinet extends RoSCTL scheme for textile exporters till March 2024

In order to help the textile exporters the union cabinet has extended the Rebate of State and Central Levies and Taxes (RoSCTL) scheme till March 2024. 

According to the RoSCTL scheme, exporters are issued a duty credit scrip for the value of embedded taxes and levies contained in exported products. Exporters can use this scrip to pay tax while importing equipment, machinery. 

An official statement said, “Continuation of RoSCTL for apparel/garments and made-ups is expected to make these products globally competitive by rebating all embedded taxes/levies which are currently not being rebated under any other mechanism. It will ensure a stable and predictable policy regime and provide a level playing field to Indian textiles exporters. Further, it will promote startups and entrepreneurs to export and ensure creation of lakhs of jobs”. 

The apparel, garments and made-ups covered under RoSCTL scheme, will not get benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme; however the sectors that aren’t covered under RoSCTL would be eligible to avail the benefits under the RoDTEP. 

It was mentioned in the statement that, “In the textiles industry, buyer place long term orders and exporters have to chalk out their activities well in advance, it is important that the policy regime regarding export for these products should be stable. Keeping in view the same, the Ministry of Textiles has decided to continue the scheme of RoSCTL upto 31st March, 2024 independently as a separate scheme”.