Rebate of State and Central Taxes and Levies (RoSCTL)
This is an export incentive scheme notified by Ministry of Textiles. The scheme aims to replace the MEIS scheme, which is facing lot of pressure on the International front. The scheme is a replacement for the erstwhile ROSL scheme, where Customs would deposit the rebate directly into the exporter’s bank account. Whereas the RoSCTL scheme provides Incentive in form of transferable and sellable duty credit scrips offered on the basis of the FOB value of the export.
At present the scheme is restricted to exporters of readymade garments and made-ups falling under Chapters 61, 62 and 63 of (All Industry Rate) AIR schedule of duty drawback. The rates under the scheme are notified in four schedules. Schedules 1 and 2 specify the Central and State taxes and levies for apparel and made-ups. Schedules 3 and 4, on the other hand, give the Central and State taxes applicable for apparel export when the fabric (including interlining) has been imported duty-free under the Special Advance Authorization Scheme. In future the Incentives are expected to extend to other products as well.
Important to Remember
- The benefit of RoSCTL scheme shall be available for exports with Let Export Order (LEO) dates from 07.03.2019 to 31.03.2020.
- If the exporter has already received MEIS for exports after 07.03.2019, the amount shall be reduced.
- All EDI Shipping bills from multiple ports can be clubbed together.
- Non EDI shipping bills have to be applied separately for each port.
- Single application can have 50 Shipping bills.
- Application has to be filed within a year from the date on which shipping bill(s) is uploaded from ICEGATE to the DGFT server.
- Validity of scrips is 24 months.
- Realization of sale proceeds is crucial and all proofs should be retained by exporter for atleast 3 years from date of issue of scrips.
- Inability to produce proofs will force the exporter to pay back the rebate amount along with 15% interest.