The Ministry of Textiles has officially announced the continuation and revision of the Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) on the export of apparel/garments and made-ups. This move, detailed in a notification dated 9th February 2024, aims to bolster the competitiveness of India’s textile sector on the global stage. The decision underlines the government’s commitment to supporting the industry by offsetting the embedded state and central taxes and levies, ensuring Indian exports remain attractive and financially viable in international markets.

The original RoSCTL scheme, which was first notified on 8th March 2019, has been extended until 31st March 2026, as per the latest notification from the Ministry of Textiles. This extension is a strategic effort to sustain the growth momentum of the textile and apparel industry by providing significant financial relief from various embedded taxes and levies that have historically burdened exporters.

RoSCTL Scheme Update Enhanced Rebates for Textile Exports

A notable update in the scheme is the revision of the rebate rate for Flexible Intermediate Bulk Containers (FIBC) – a key product in the textile export basket. The rate has been adjusted from ‘NIL’ to 2.3%, with a cap of Rs 3.7 per kg, based on the recommendations of the RoDTEP Committee. This adjustment is expected to make FIBC exports more competitive by reducing the cost pressures faced by exporters in this segment.

The Ministry of Textiles has tasked the Department of Revenue (DoR) with implementing this scheme through an end-to-end digitization process. This modern approach aims to streamline the issuance of transferable Duty Credit Scrips, making the process more efficient and transparent for exporters. The DoR is expected to make necessary system adjustments to facilitate the issuance of scrips under the RoSCTL for FIBC exports.

The extension and revision of the RoSCTL scheme represent a significant policy intervention by the Government of India to support the textile sector. By rebating state and central taxes and levies on exports, the government is not only enhancing the sector’s global competitiveness but also signaling its strong commitment to the industry’s long-term growth. This policy update is poised to provide a much-needed boost to textile exporters, particularly in the FIBC segment, by alleviating some of the financial burdens and facilitating smoother operational processes. The textile industry stakeholders are encouraged to leverage these benefits to maximize their growth potential and contribute to India’s expanding presence in the global textile market.

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MINISTRY OF TEXTILES

NOTIFICATION

New Delhi, the 9th February, 2024

Scheme for Rebate of State and Central Taxes and Levies on Export of Apparel/Garments and Made-ups (RoSCTL)

F. No. 12014/01/2023-TTP.—In pursuance of the decision of the Government of India to rebate all embedded State and Central Taxes and Levies on export of garments and made-ups to enhance competitiveness of these sectors, the Ministry of Textiles has notified continuation of Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) upto 31st March 2026 vide notification No. 12015/11/2020-TTP dated 08.02.2024.

2. The rates of RoSCTL Scheme were notified vide notification no. 14/26/2016-IT (Vol.II) dated 8.3.2019 and the rate of Flexible Intermediate Bulk Containers (FIBC) as per notification dated 08.03.2019 was ‘NIL’.

3. As per recommendation of RoDTEP Committee, the revised rate of FIBC is as under:

CHAPTER – 63

OTHER MADE UP TEXTILES ARTICLES; SETS;

 

WORN CLOTHING AND WORN TEXTILE ARTICLES; RAGS
Tariff Item (HS Code) Description of goods Unit Rates (in %) Cap per unit in Rs.
1 2 3 4 5
6305 3200 Flexible Intermediate  Bulk Containers (FIBC) Kg 2.3 Rs.3.7 per kg

4. Ministry of Textiles accepts the recommendation of RoDTEP Committee and notify the change in rate of FIBC under RoSCTL from ‘NIL’ to 2.3% subject to a cap of Rs 3.7 per Kg, applicable from the date of this Gazette Notification. The scheme shall be implemented by Department of Revenue (DoR) with end to end digitization for issuance of transferable Duty Credit Scrip and accordingly DoR shall make necessary changes in the system to enable issue of scrips under RoSCTL against export of FIBC.

SHUBHRA, Trade Advisor

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