The Government has issued Notification regarding continuation of Scheme for Rebate of State and Central Taxes and levies (RoSCTL) on export of garments and made-ups to enhance competitiveness of these sectors.
Government has decided to continue the RoSCTL w.e.f. 01st January 2021 to 31st March 2024 for apparel/garments (under Chapter 61 and 62) and Made-ups (under Chapter 63) in exclusion of RoDTEP.
A mechanism for such revision shall be decided separately by Ministry of Textiles and Ministry of Finance.
However, eligibility criteria under RoSCTL shall remain unchanged.
The other textiles products (excluding Chapter 61,62 and 63) which are not covered under the RoSCTL shall be eligible to avail the benefits, if any, under RoDTEP along with other products, as to be finalised by Department of Commerce from the dates which may be notified in this regard.
The Scheme shall be implemented by Department of Revenue with end to end digitization for issuance of transferable Duty Credit Scrip, which will be maintained in an electronic ledger in the Customs system.
Duty Credit Scrip under RoSCTL Scheme shall be issued without insisting on realization of export proceeds.
Continuation of RoSCTL for Apparel/Garments and Made-ups will make these products globally competitive by rebating all embedded taxes/levies which are currently not being rebated under any other mechanism.
It will ensure a stable and predictable policy regime and provide a level playing field to Indian textiles exporters.
Further, it will promote startups and entrepreneurs to export and ensure creation of lakhs of jobs.
“While the proposed scheme will be implemented on a revenue foregone basis, a budgetary control would be exercised through appropriate entries in the annual financial statement.
“To ensure that expenditure under the scheme does not exceed the allocation amount in a particular financial year, the expenditure and liability shall be reviewed on a quarterly basis,” it added.
It said that for the purpose of audit and verification, the exporter would be required to keep records to substantiate their claims made under the scheme. And, the Central Board of Indirect Taxes and Customs (CBIC) would put a monitoring and audit mechanism, with an information technology-based risk management system (RMS), in place
