01. Rebate of State and Central Taxes and Levies (RoSCTL) scheme is a Ministry of Textiles scheme for exports under Chapters 61, 62 and 63 of Customs Tariff. The scheme rebates various Central, State and local duties/taxes/levies which were not refunded under other duty remission schemes. It is a budgeted scheme.
02. Ministry of Textiles had notified the initial Rebate of State and Central Taxes and Levies (RoSCTL) scheme vide notification No. 14/26/2016-IT dated 07.03.2019. The rates for this scheme were notified by MoT on 08.03.2019. MoT’s further notification No. 14/26/2016-IT dated 02.05 .2019 elaborated on the nature of rebate, mechanism of issue of scrips, etc. under RoSCTL scheme. The scheme was applicable for exports with let export order between 07 .03.2019 to 31.03.2020 which was later extended to 31st March, 2021 or until such date the RoSCTL scheme was merged with the Remission of Duties and Taxes on Exported Products scheme, whichever is earlier.
03. Government later decided to extend the RoSCTL scheme w.e.f. 01.01.2021 to 31.03.2024 for apparel/ garments (under Chapter 61 and 62) and madeups (under Chapter 63), in exclusion of RoDTEP for these Chapters. As per MoT’s Notification No.12015/11/2020-TTP dated 13.08.2021 issued for the extended RoSCTL scheme, RoSCTL eligibility remains unchanged. The rates as notified by Ministry of Textiles vide notification No. 14/26/2016- IT(Vol.II) dated 08.03.2019 were also continued.
04. The extended RoSCTL scheme is implemented by Department of Revenue (DoR) with end to end digitization of issuance of remission amount in the form of transferable duty credit electronic scrip, which is maintained in an electronic ledger in the Customs system scheme for exports made w.e.f. 01.01.2021.
05. DoR’s notification on RoSCTL scheme implementation guidelines (Notification No. 24/2023-Customs (N.T.) dated 01.04.2023) provides for the manner of issue of duty credit under the RoSCTL and the conditions and restrictions governing the issuance of duty credit. Electronic Duty Credit Ledger Regulations, 2021 (Notification No. 75/2021 dated 23.09.2021 as amended vide Notification No. 79/2022 dated 15.09.2022) specify Regulations for use, transfer, maintenance etc. of Electronic Duty Credit Ledger.
06. Circulars No. 22/2021-Customs dated 30.09.2021 and No. 22/2022-Customs dated 26.09.2021 on RoSCTL scheme provide further details on scheme implementation. Systems Directorate has also issued various Systems Advisories, including No. 23/2021 dated 30.09.2021, on Implementation of RoSCTL scheme in System
07. Duty credit allowed under the RoSCTL scheme is subject to realization of sale proceeds within the period allowed by RBI. The EDCL Regulations, read with said Notification above, also provide for the situations and manner of suspension or cancellation of duty credit or e-scrip, or recovery when duty credit allowed was in excess or where export proceeds are not realised
08. A monitoring and audit mechanism, with risk management system has also been put in place by CBIC.
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