ROSCTL DUTY

CREDIT SCRIP

Following the discontinuation of previous export incentive schemes such as MEIS, which were found to be non-compliant with WTO guidelines, the Indian government has introduced a new scheme known as the Rebate of State and Central Taxes and Levies Duty Credit Scheme, (RoSCTL). This initiative, notified by the Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes & Customs Drawback Division, is specifically aimed at incentivizing the export of garments and made-ups.
Under the RoSCTL Scheme, exporters of clothing and made-up articles are eligible for refunds on state and central taxes and levies incurred during the manufacturing process. This measure is intended to enhance the competitiveness of Indian exports in the global market by providing relief from the burden of domestic taxes and levies.
It's noteworthy that the RoSCTL Scheme is slated to remain in effect until 31st March 2020. As part of this transition, the existing Rebate of State Levies (RSL) Duty Credit scheme for garments and made-ups has been phased out. While currently applicable to the textile industry exclusively, there are plans to extend the Duty Credit RoSCTL Scheme to other sectors in the near future, thereby broadening its impact and scope across various industries.