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RoSCTL scheme: Benefits, eligibility and application procedure

The Rebate of State & Central Taxes and Levies (RoSCTL) scheme provides rebate on all state and central taxes that are meant for exports of made-up articles and garments. Here’s a complete guide to understand the RoSCTL scheme.
RoSCTL Scheme
One of the key export schemes launched by the Ministry of Textiles, Government of India, to benefit Indian textile exporters is the Rebate of State & Central Taxes and Levies (RoSCTL) scheme. Introduced on March 7th 2019, this scheme aims to provide support to exporters selling textile internationally.

What is the RoSCTL scheme?

The RoSCTL scheme acts as a rebate for embedded state and central taxes on garments. The objective of this scheme is to increase competitiveness in these textile sectors in international markets. It is an export incentive through which transferrable credit scrips are given to exporters that can be used for payment of customs duties. Through this scheme, exporters can cut down on high logistics costs, enhancing global competitiveness.

Who is eligible for the RoSCTL scheme?

Merchants or manufacturer-exporters who are directly exporting garments and apparel that are manufactured in India are eligible for this scheme. However, businesses listed in the ‘Denied Entity List of DGFT’ cannot avail of the benefits of this scheme1. Another key point to note is that an exporter can avail the benefits of the RoSCTL scheme only if he/she has not availed the benefits of the RoDTEP scheme.

What are the restrictions on rebate under the RoSCTL scheme?

The following list of goods are not eligible under the RoSCTL scheme2:
• Goods exported through trans-shipment (meaning goods that have originated from another country but are transported through India)
• Goods subjected to minimum support price or export duty
• Deemed goods under Foreign Trade Policy
• Goods manufactured or exported from regions that are 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
• Goods that have been taken into use after the manufacturing or reconditioning of used goods
• Goods for which duty credit claim has not been filed in a shipping bill or a bill of export in the customs automated system

How to apply for the RoSCTL scheme?

Below are some of the documents required to apply for the RoSCTL scheme:

• IEC
• Shipping bills
• Digital signature certificate
• DGFT registration
Below are the steps to apply for RoSCTL3:
1. Visit the DGFT website and fill in the ANF 4-R form with a digital signature. While filling out the form, keep the shipping bills handy. Fifty shipping bills can be used in a single application.
2. Once the application, along with the bills, has been submitted, the applicant needs to register for RoSCTL scripts while keeping in mind the following guidelines:
• Shipment from EDI (Electronic Data Interchange) ports and non-EDI ports cannot be clubbed together in a single application.
• The port of registration for EDI enabled port needs to be chosen from any of the ports from where the export has been conducted.
3. Once submitted, DGFT’s system will electronically approve the entitlement per shipping bill including the additional ad-hoc incentives.
4. After the approval of the final entitlement, scrips will be issued by the RA (Regional Authority) in a paperless mode. The RAs will scrutinize 2% of issued RoSCTL applications per week under an RMS (Risk Management System). The RMS cases will be automatically generated by DGFT.
The RoSCTL scheme can benefit your textile business in the long run. The Government of India has introduced many schemes and incentives to assist exporters and accelerate export growth from India. With e-commerce exports programs, Indian exporters can grow their businesses and take their local products across the world with ease.

Amazon Global Selling: Easy exports via e-commerce

To make exporting from India easy for sellers and MSMEs, Amazon Global Selling, an e-commerce exports program, provides assistance at every step of export journey. From obtaining export documents to easy product listing and international shipping, Amazon Global Selling enables Indian exporters to sell internationally in a simple way via e-commerce. By registering as an Amazon Global Seller, your products can reach over 300 million customers across the world. The more the customers view your product; there are higher the chances of your sales.

Frequently Asked Questions

When was RoSCTL scheme introduced?
RoSCTL scheme was introduced on March 7th, 2019.
What is the difference between RoSL scheme and RoSCTL scheme?
The difference between RoSL & RoSCTL Scheme is that under 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.
What is the validity of the RoSCTL scheme?
This scheme will be effective till 31st March, 2024.
Is there any requirement of linking e-BRC (Electronic Bank Realization Certificate) while applying for RoSCTL?
No, there is no requirement of linking e-BRC to apply for RoSCTL.
Is there any fee for claiming the benefits under RoSCTL scheme?
There is no government fee for claiming benefits provided by RoSCTL scheme.
What is late-cut in RoSCTL scheme?
There is no provision for a late cut in the RoSCTL scheme. Exporters need to apply within one year of the shipping bill or else the shipping will be time-barred and no benefit will be granted.
Published on July 11, 2022.

Sources:
1. https://cip.icegate.gov.in/CIP/static/images/doc/RoDTEP/FAQs1.pdf
2. https://www.dgft.gov.in/CP/?opt=rosctl
3. https://content.dgft.gov.in/Website/PN58E_2020.pdf
4. http://dgftcom.nic.in/eComapplications.html
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*Map not to scale. The map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognized by the Survey of India.

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