RoSCTL scheme for garment exports extended till March 31, 2024

In an effort to increase exports and generate employment in the textile industry, the Ministry of Commerce and Industry has authorised the continuation of the Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) with the same rates as announced by the Ministry of Textiles for exports of apparel/garments and made-ups until March 31, 2024.

The scheme aims to compensate state and central taxes and levies, and even the Duty Drawback Scheme, on exports of apparel/garments and made-ups through rebates. The rebate of state taxes and levies includes VAT on fuel for transportation, captive power, farm sector, mandi tax, electricity duty, stamp duty on export documents, embedded SGST paid on inputs such as pesticides, fertilisers, and other chemicals used in the production of raw cotton, purchases from unregistered dealers, coal used in the production of electricity, and inputs for the transportation sector. The Rebate of Central Taxes and Levies, on the other hand, includes central excise duty on transportation fuel, embedded CGST paid on inputs such as pesticides, fertiliser, and so on used in the production of raw cotton, and purchases from unregistered dealers, transportation inputs, embedded CGST, and compensation Cess on coal used in electricity production.

RoSCTL is a growth-oriented scheme that has helped increase exports and jobs by establishing a stable and predictable policy environment. The Scheme has enhanced cost effectiveness and export competitiveness of Indian MSMEs in the global market. Additionally, it has aided in the development of startups and entrepreneurs in the industry and encouraged a significant number of MSMEs to enter the garment export market.

Soruce:  https://www.livemint.com/news/india/govt-extends-rosctl-scheme-till-march-2024-for-exports-of-apparelgarments-11657793318417.html