It aims to reimburse all embedded State and Central Taxes/Levies for exports of manufactured goods and garments. It has been established as a successor for the old “Rebate of State Levies (RoSL) Scheme.

The difference between RoSL & RoSCTL Scheme is that under the RoSL Scheme, there was no benefit on the central tax and Levies. But in the RoSCTL scheme, the exporter will get rebate of both State and Central tax and Levies.

● Cost reduction

To compensate for the State and Central Taxes and Levies in addition to the Duty Drawback Scheme on export of apparel/ garments and Made-ups by way of rebate.

The rebate under the Scheme shall be in the form of duty credit scrips.

The scrips shall be issued electronically on the Customs system.

The duty credit scrips shall be used for payment of Basic Customs Duty on import of goods. These scrips shall be freely transferable.

The duty credit available in an e-scrip shall be transferred at a time for the entire amount in the said e-scrip to another person and transfer of the duty credit in part shall not be permitted.

● Validity of e-scrip

The period of validity of the e-scrip, of one year from its creation, shall not change on account of transfer of the e-scrip.

● Eligibility

All exporters of garments/Apparel and made-ups manufactured in India are eligible to take benefit under this scheme, except entities/ IECs under the Denied Entity List of the Directorate General of Foreign Trade (DGFT).

● Implementing agency

It has been notified by the Ministry of Textiles. However, the scheme shall be implemented by the Department of Revenue.

Who is eligible for the RoSCTL scheme?

Here are the key eligibility criteria that businesses must meet to avail the benefits of RoSCTL scheme:

• Merchants or manufacturer-exporters who are directly exporting garments and made-up articles manufactured in India are eligible.
• Businesses listed on the DGFT’s ‘Denied Entity List’ are ineligible.
• Exporters must not have claimed benefits under the RoDTEP scheme.
• Exporters must apply for the scheme within one year of the shipping bill or the shipping will be time-barred and no benefit will be granted.
• The scheme is applicable for both cargo and courier exports.

Benefits of the RoSCTL scheme

The RoSCTL scheme offers several significant advantages for exporters. Below are some major benefits:

● Cost reduction

By reimbursing state and central taxes and levies, the scheme enables exporters to lower their expenses and price their products more competitively in global markets.

● Enhanced competitiveness

The scheme boosts exporter competitiveness by enabling lower product prices. The rebates help offset costs, allowing Indian exporters to compete with foreign manufacturers.

● Growth promotion

The financial support allows exporters to reinvest in their businesses, from expanding manufacturing to adopting new technologies or diversifying product lines.

● Flexible usage

There are several uses for duty credit scrips obtained through the RoSCTL scheme. Exporters can sell these to generate funds or use them to pay import tariffs on necessary inputs. This flexibility helps businesses manage cash flow effectively.

● Efficiency in bulk processing

The scheme facilitates bulk processing and allows for up to 50 shipping bills per application, streamlining processes and ensuring timely rebates, which improves financial stability.

Rebates under the RoSCTL scheme

Under the RoSCTL scheme, duty credit scrips are issued electronically as rebates. These scrips are maintained in the electronic duty credit ledger and can be used to pay customs duties. Eligible exporters receive rebates on the export of garments, apparel, and made-ups manufactured in India, at rates specified by the Ministry of Textiles, based on applicable state and central taxes and levies.

Procedure/Compliance

You must mention the mandatory intent declaration, scheme code, and scheme reward column on the shipping bill to claim RoSCTL, if you do not mention them, you cannot claim it.

RoSCTL rebate is % on SB FOB value, with the value cap per unit of export product.

Documents required for RoSCTL scheme

Below are some of document’s exports must furnish to apply for the RoSCTL scheme:

• Importer Exporter Code (IEC)
• Copies of shipping bills
• Digital signature certificate
• DGFT registration
• Valid RCMC (Registration Cum Membership Certificate)

You may also need to provide additional documents based on product and business type.

How to apply for the RoSCTL scheme?

The following overview outlines the steps involved in the RoSCTL scheme application:

Step 1: Fill out the ANF 4R form on the DGFT website.

Step 2: Select your relevant regional authority (RA) and Port of Registration for RoSCTL scrips.

Step 3: File separate applications for shipments from EDI and non-EDI ports. Each application can include up to 50 shipping bills.

Step 4: RoSCTL scrips are valid for 24 months. Check your status and use scrips at EDI ports, get a Telegraphic Release Advise (TRA) for non-EDI ports.

Step 5: Note the correct Scheme Code in your shipping bills to claim benefits from RoSCTL and other schemes (e.g., Duty Drawback, Special Advance Authorization, EPCG).

Also Read This: Top Exports Products to Export from India in 2025

Risk factors under RoSCTL scheme

Although the RoSCTL plan benefits exporters, some inherent risks require adequate management. Some of these are as follows:

● Incorrect documentation

Inaccurate or incomplete documentation can lead to delays or rejection of rebate claims.

● Retaining proof of sale proceeds

Exporters must keep records of receiving payment in foreign currency to ensure eligibility for rebate.

● Electronic verification

Authorities may electronically verify applications and supporting documents. To prevent inconsistencies or delays, exporters should ensure all documentation is accurate and up-to-date.

● Repayment of excess rebate claims

If claim frequency exceeds the preferred level, exporters must repay overclaimed amounts. The DGFT may charge 15% annual interest on the repayment from the date the duty credit scrips were issued until repayment is made.

● Penalties for non-compliance

Non-compliance with RoSCTL regulations, such as failing to declare excess rebate receipts or committing fraud, can lead to penalties. This may include legal action under the Foreign Trade (Development and Regulation) Act, requiring exporters to repay the rebate plus interest.

● Responding to authorities’ notices

Exporters must respond to notices from authorities within 30 days or face legal action under the Foreign Trade Act.

List of central taxes (refundable)

• Central excise duty on fuel used in transportation.
• Embedded CGST paid on inputs such as pesticides, fertilizers, etc., used in production.
• Purchases from unregistered dealers and inputs for the transport sector.
• Embedded CGST.
• Compensation cess on coal used in the production of electricity.

List of state taxes (refundable)

• VAT on fuel used in transportation and captive power.
• Mandi tax.
• Duty on electricity.
• Stamp duty on export documents.
• Embedded SGST paid on inputs such as pesticides, fertilizers, etc., used in the production of raw cotton.
• Purchases from unregistered dealers.
• Coal used in the production of electricity and inputs for the transport sector.

The following list of goods are not eligible under the RoSCTL scheme:

• India transports goods that have originated from another country as transshipment exports.
• Goods subjected to minimum support price or export duty.
• Deemed exports under Foreign Trade Policy.
• Manufacturers produce or export goods from regions situated in Special Economic Zones or Export Processing Zones.
• Goods manufactured or supplied by units in Domestic Tariff Areas to units in Special Economic Zones.
• Used goods follow the manufacturing or reconditioning of used items.
• Goods for which exporters have not filed a duty credit claim in a shipping bill or a bill of export in the customs automated system.