Centre approves extension of RoSCTL scheme for garment exporters till March 24

Tribune News Service
New Delhi, July 14

With an aim to enhance the competitiveness of the labour-intensive textiles sector, the government on Wednesday decided to extend the RoSCTL scheme for providing a rebate on central and state taxes to garment exporters on their outward shipments till March 2024.  

Announcing the decision taken at a meeting of the Union Cabinet, which was chaired by Prime minister Narendra Modi, Information & Broadcasting Minister Anurag Thakur said, the Rebate of State and Central Taxes and Levies (RoSCTL) scheme has been extended till March 2024 and the outward shipments of apparel/garments and made-ups would attract same rates as notified by the Ministry of Textiles for exports.

“The scheme will continue till March 31, 2024. It will help boost exports and job creation,” the Minister said while briefing media after the meeting of the Union Cabinet.

The sectors covered under this scheme (apparel/garments and made-ups) would not get benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, he added.

However, textiles products, which are not covered under the RoSCTL would be eligible to avail the benefits, if any, under RoDTEP along with other products as finalised by the Department of Commerce.

“The scheme will be implemented by the Department of Revenue with end-to-end digitisation for issuance of transferrable Duty Credit Scrip, which will be maintained in an electronic ledger in the customs system,” Thakur said.  

Revised guidelines for the continuation and implementation of the RoSCTL scheme will be prepared by the Ministry of Textiles in consultation with the Department of Revenue with necessary flexibilities to fine-tune the operational details, implementation modalities and scheduling, the government said in a statement.

It further said, “Continuation of RoSCTL for apparel/garments and made-ups is expected to make these products globally competitive by rebating all embedded taxes/levies which are currently not being rebated under any other mechanism.”