Ministry of Textiles had notified a new scheme called Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) on export of garments and made-ups vide Notification No. 14/26/2016-IT (Vol II) dated 7th March, 2019, w.e.f. 7th March, 2019.
RoSCTL Scheme shall remain in force up to 31.03.2020.
Old scheme ROSCTL shall be discontinued.
CBIC has issued Circular No. 10/ 2019-Customs dated 12th March, 2019, Notification No. 13/2020 – Customs dated 14th February, 2020 and Notification No. 1/2020 – Central Excise dated 14th February, 2020 on the above subject.
OBJECTIVE – In accordance with the recognized international economic principle of zero rating of export products,
The Central Government shall provide for rebate of State and Central Taxes and Levies in addition to the Duty Drawback Scheme, through the Scheme for RoSCTL on export of Garments and Made-ups at notified rates and value caps.
Rebate of State Taxes and Levies shall be understood to comprise VAT on fuel used in transportation, captive power, farm sector, mandi tax, duty of electricity, stamp duty on export documents, embedded SGST paid on inputs such as pesticides, fertilizers etc. used in production of raw cotton, purchases from unregistered dealers, coal used in production of electricity and inputs for transport sector.
Rebate of Central Taxes and Levies shall be understood to comprise central excise duty on fuel used in transportation, embedded CGST paid on inputs such as pesticides, fertilizer etc. used in production of raw cotton, purchases from unregistered dealers, inputs for transport sector and embedded CGST and Compensation Cess on coal used in production of electricity.
The rates (including applicable value caps) of RoSCTL on export of garments and made-ups manufactured in India have been recommended by the Drawback Committee constituted by the Central Government notified by the Ministry of Textiles.
The ROSCTL shall be implemented by DGFT through a Merchandise Exports from India Scheme (MEIS) type scrip system.
Exemption from Basic Customs Duty and Central Excise duty when imported against a duty credit scrip issued by the Regional Authority under the RoSCTL scheme in accordance with paragraph 4.01(c) of the Foreign Trade Policy read with paragraphs 4.95 and 4.96 of the Handbook of Procedures