RoSCTL is a government incentive scheme aimed at reimbursing unrebated state and central taxes and levies on exported garments and made-ups. It was introduced to enhance the competitiveness of the Indian textile industry in the global market.
Why RoSCTL?
🔹 Replaces the Rebate of State Levies (RoSL) scheme.
🔹 Provides direct benefits for garment & made-up exporters.
🔹 Eliminates embedded taxes & levies in the textile sector.
🔹 Ensures higher export margins & global competitiveness.
📌 Ideal For: Exporters in the apparel, textile, and made-up sectors.
Key Features of RoSCTL Scheme
1. Refund of Unrebated Taxes & Levies
✔ Covers State Taxes, including:
- VAT on fuel used in production
- Mandi tax on cotton purchases
- Electricity duty
- Stamp duty on export-related transactions
✔ Covers Central Taxes, including:
- Excise duty on fuel used for transportation
- Embedded CGST on inputs
- Taxes on procurement of farm inputs
2. Digital & Automated Refund Process
RoSCTL refunds are provided in the form of Duty Credit Scrips.
✔ Scrips are digitally issued through the DGFT portal.
✔ Refunds can be used for customs duty payments or freely traded.
3. Exclusively for Textile & Apparel Sector
✔ Only garment and made-up exporters are eligible.
✔ Applies to all exporters under HS Chapters 61, 62, and 63.
✔ Not available for other industries.
🚫 Exclusions:
🔹 SEZ & EOU units are currently NOT eligible.
🔹 Exporters claiming MEIS or RoDTEP cannot claim RoSCTL simultaneously.
RoSCTL Rates & Product Coverage
The DGFT periodically releases RoSCTL rates for various textile products. The rates vary based on:
✔ Product type (Apparel, Made-ups, etc.)
✔ Tax incidence on inputs
✔ Industry-specific cost structures
Latest RoSCTL Rates (Issued by DGFT)
Below are some sample RoSCTL rates (full list available on DGFT portal):
Eligibility Criteria for RoDTEP
✔ Manufacturer and Merchant Exporters can avail the scheme.
✔ Export must be done under free shipping bills (non-bonded, non-EOU).
✔ Goods should be manufactured in India.
Benefits of RoDTEP for Exporters
✔ Cost Reduction: Refund of hidden taxes lowers production costs.
✔ Enhanced Competitiveness: Helps Indian products compete in global markets.
✔ Boost for MSMEs: Small exporters benefit from easier refund processes.
✔ Increases Profit Margins: By reducing tax burdens, exporters gain higher profits.
2. Digital & Automated Refund Process
✔ RoDTEP credits are issued digitally in exporters’ ICEGATE accounts.
✔ Refunds are processed via electronic scrips (transferable & tradable).
✔ No human intervention, ensuring transparency & efficiency.
3. Eligibility for All Exporters
✔ Manufacturer and Merchant Exporters can avail the scheme.
✔ Export must be done under free shipping bills (non-bonded, non-EOU).
✔ Goods should be manufactured in India.
✔ Available for all goods exported under notified HS codes.
✔ Applies to both MSMEs and large exporters.
🚫 Exclusions:
🔹 Exports under Advance Authorization, DFIA, or EPCG are NOT covered.
RoDTEP Rates & Product Coverage
The DGFT periodically releases RoDTEP rates for different products. These rates vary based on:
✔ Product category & HS code
✔ Tax incidence on inputs
✔ Economic conditions & industry requirements
| Product Category | HS Code | RoSCTL Rate (%) | |
|---|---|---|---|
| Knitted Garments (Cotton) | 6101 | 6.00% | |
| Woven Garments (Synthetic) | 6201 | 8.20% | |
| Bed Linen & Home Furnishings | 6302 | 5.80% | |
| Terry Towels | 6302 | 6.80% | |
📌 Complete list of RoDTEP rates can be accessed on the DGFT website or through our expert assistance.
RoSCTL vs. RoDTEP: Key Differences
| Feature | RoSCTL | RoDTEP | |
|---|---|---|---|
| WTO Compliant | ✅ Yes | ✅ Yes | |
| Refund Type | State & Central Taxes & Levies | Embedded non-GST taxes | |
| Eligibility | Textile & Apparel exporters | All goods exporters | |
| Credit Type | Transferable Duty Credit Scrips | ICEGATE Digital Scrips | |
| Refund Coverage | State & Central levies on inputs | All non-GST taxes & duties | |
Benefits of RoSCTL for Exporters
✅ Eliminates hidden costs in textile exports.
✅ Enhances profit margins & competitiveness.
✅ Supports MSMEs & large exporters in apparel industry.
✅ Digital & transparent refund mechanism.
✅ Enables easy credit utilization & trading of scrips.
🚀 Pragati Exim Solution helps textile exporters maximize RoSCTL benefits hassle-free!
Common Challenges & Solutions in RoSCTL
1. Incorrect HS Code Mapping
❌ Wrong HS code = No RoSCTL benefits!
✔ Solution: Expert HS code classification for maximum benefits.
2. Delay in RoSCTL Refunds
❌ Government processing delays can affect working capital.
✔ Solution: Proper documentation & claim tracking.
3. Confusion Between RoSCTL & RoDTEP
❌ Some exporters incorrectly claim RoDTEP instead of RoSCTL.
✔ Solution: Pragati Exim Solution ensures correct scheme selection!
Why Choose Pragati Exim Solution for RoSCTL Claims?
📌 25+ Years of Experience in Export Incentives
📌 Expert HS Code Classification for Maximum Benefits
📌 Faster Processing & Claim Tracking
📌 Direct Coordination with DGFT & ICEGATE
📞 Want to maximize your RoSCTL refunds? Contact Pragati Exim Solution today! 🚀
- 1 What is the RoSCTL Scheme?
- RoSCTL is an export incentive scheme that reimburses state & central levies on textile & apparel exports.
- 2 Who is eligible for RoSCTL?
- Only garment & made-up exporters under HS chapters 61, 62 & 63.
- 3 Can RoDTEP be claimed along with Duty Drawback?
- Yes, RoDTEP is separate from Duty Drawback and both can be claimed
- 4 How are RoSCTL benefits given?
- RoSCTL refunds are issued as duty credit scrips, which can be used for duty payments or traded.
- 5 What is covered under RoSCTL?
- Refund includes electricity duty, fuel tax, mandi tax, and embedded state & central taxes
- 6 Can RoSCTL be claimed with RoDTEP?
- No, RoSCTL applies only to textile & apparel exporters. RoDTEP is for other products.
- 7 How do I know the RoSCTL rate for my product?
- RoSCTL rates are notified by DGFT and available on ICEGATE
- 8 What happens if my RoSCTL claim is delayed?
- Proper documentation & timely filing help prevent delays
- 9 Can RoSCTL scrips be transferred?
- Yes, RoSCTL scrips are transferable & tradable in the market.
- 10 Are MSME exporters eligible for RoSCTL?
- Yes, all eligible MSME textile exporters can claim RoSCTL.