ROSCTL Scheme (Syllabus: GS Paper 3 – Economy)

Context: The Union Cabinet Thursday approved the continuation of the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for apparel, garments and made-ups till March 31, 2026, a move aimed at enhancing the export competitiveness of garment and made-up sectors.

Rebate of State and Central Taxes and Levies (RoSCTL) Scheme

• Launch: 2020. Earlier, it was extended till March 2024.
• Chaired by: Prime Minister of India approved the continuation of the scheme for RoSCTL for export of apparel/garments and made-ups up to March 31, 2026.
• Objective: To reimburse all embedded State and Central Taxes/Levies related to the export of manufactured goods and garments.
• Implemented by: Department of Revenue.
• Successor to RoSL Scheme: Established as the successor to the previous "Rebate of State Levies (RoSL) Scheme."
• Rebate of State Taxes and Levies comprises: VAT on fuel used in transportation, captive power, farm sector, mandi tax, duty of electricity, stamp duty on export documents, embedded SGST paid on inputs such as pesticides, fertilizers etc. used in production of raw cotton, purchases from unregistered dealers, coal used in production of electricity and inputs for transport sector.
• Benefits: RoSCTL provides exporters with rebates on both State and Central taxes and levies.

oRoSCTL has been an important policy measure and has helped in enhancing competitiveness of Indian exports of apparel and made ups which are value added and labour intensive segments of the Textile Value Chain.