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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.

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 7^th 2019, this scheme aims to provide support to exporters selling textile internationally. Here’s a complete guide to understanding the RoSCTL scheme.

What is the RoSCTL scheme?

The RoSCTL scheme acts as a rebate for embedded state and central taxes on garments with an aim to increase competitiveness in 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 custom duties. Through this scheme, exporters can cut down on high logistics costs.

Who is eligible for the RoSCTL scheme?

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

Benefits of the RoSCTL scheme

The following list of goods are not eligible under the RoSCTL scheme¹:
• The scheme helps exporters lower their logistics and other costs, enabling them to compete better in global markets.
• Through this scheme, exporters get a rebate on both State and Central tax and levies.

Rebates under the RoSCTL scheme

When an exporter avails the RoSCTL scheme, duty credit scrips are issued electronically on the customs automated system as rebates. These scrips are maintained in the electronic duty credit ledger and can be used for the payment of customs duties. Eligible exporters will be given a rebate under the RoSCTL scheme (including any applicable value caps) on export of garments, apparel, and made-ups made in India at a rate specified by the Ministry of Textiles, as per the rates of State and Central taxes and levies for clothing and made-up¹.

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 the production of raw cotton
• 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, captive power, and farm sector
• Mandi tax
• Duty of 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

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

Documents required for RoSCTL scheme

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

• Importer Exporter Code (IEC)
• Shipping bills
• Digital signature certificate
• DGFT registration

How to apply for the RoSCTL scheme?

Below are the steps to apply for RoSCTL⁴:

Step 1:

Visit the DGFT website and fill in the ANF 4-R form with a digital signature. While filling the form, keep your shipping bills handy. Over 50 shipping bills can be used in a single application.

Step 2:

Once the application and bills are submitted, register for RoSCTL scripts. Below are a few guidelines to keep in mind:
• 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.

Step 3:

Once submitted, DGFT’s system will electronically approve the entitlement per shipping bill, including additional ad-hoc incentives.

Step 4:

After approval of the final entitlement, scrips will be issued by the Regional Authority (RA) in a paperless mode.

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: Your passport to 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.

Guide to export with Amazon

More blogs on export schemes

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2. Gold Card Scheme for exporters: Objectives, eligibility and benefits

3. How to register for the Market Access Initiative (MAI) scheme?

4. What is the NIRVIK scheme for exporters?

5. All you need to know about Interest Equalisation Scheme and its benefits

6. All you need to know about the Transport and Marketing Assistance Scheme (TMA Scheme)

7. Understanding export incentives in India: What are the benefits for exporters?

8. What is Duty Entitlement Passbook (DEPB) Scheme for exporters?

9. Advance Authorisation Scheme: How does it help exporters?

10. What is Export Promotion Capital Goods Scheme (EPCG)?

11. What is Duty Drawback in export: Meaning, types and process

12. Understanding the benefits of RoDTEP scheme: A guide for Indian exporters

13. What is Authorized Economic Operator (AEO) Programme: How to register and obtain AEO certificate?

Frequently Asked Questions

When was RoSCTL scheme introduced?

The RoSCTL scheme was introduced on March 7th, 2019.

What is the difference between RoSL scheme and RoSCTL scheme?

Under RoSL scheme, there was no benefit on central tax and levies. But in the RoSCTL scheme, exporters get a rebate of both State and Central tax and levies.

What is the validity of the RoSCTL scheme?

This scheme will be effective tillMarch 31st, 2024.

Is there any requirement to link an 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.

What is the ANF 4R form?

ANF 4R form (6) is the application form for receiving reimbursement under RoSCTL⁵.

Published on July 11, 2022.

Sources:
1. https://cip.icegate.gov.in/CIP/static/images/doc/RoDTEP/FAQs1.pdf
2. https://www.dripcapital.com/en-in/resources/blog/rosctl-scheme
3. http://www.srtepc.org/gallery/view/131187
4. https://www.indiafilings.com/learn/rosctl-scheme/
5. https://taxguru.in/dgft/dgft-notifies-anf-4r-application-form-claiming-rebate-roscti.html

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