Cabinet approved the continuation of RoSCTL scheme from 1 April:
The Union Cabinet chaired by Prime Minister Narendra Modi approved for continuation of Rebate of State and Central Taxes and Levies (RoSCTL) scheme from 1 April 2020. Until then, the scheme will be merged with the Remission of Duties and Taxes on Exported Products (RoDTEP). It is expected to make the textile sector competitive by rebating all taxes and levies that are currently not being rebated under any other mechanism.
RoSCTL Scheme:
♦ RoSCTL Scheme is an export incentive that is offered on the basis of the Freight on Board (FOB) value of the export.
♦ It will replace the Rebate of State Levies (RoSL) scheme.
♦ The introduction for RoSCTL was notified by the Ministry of Textiles in March 2019.
♦ RoSCTL will be implemented through a scrip-based system on the export of garments and made-ups.
♦ Under the scheme, the rates were notified in four schedules. Schedules 1 and 2 specify the Central and State taxes and levies for apparel and made-ups. Schedules 3 and 4 will give the Central and State taxes applicable for apparel export when the fabric has been imported duty-free under the Special Advance Authorisation Scheme.
♦ The scheme was introduced due to the increasing international pressure on export incentives provided by the Indian government.