NEWS – Union Cabinet approved the continuation of the Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) for the export of Apparel/Garments and made up to 31st March 2026

REBATE OF STATE AND CENTRAL TAXES AND LEVIES

• Introduced by the Indian government to support the country’s textile and apparel sector
• Aims to enhance the competitiveness of the industry by providing a rebate on various state and central taxes and levies that are not subsumed by the Goods and Services Tax (GST)
• Part of the broader “Make in India” initiative, encouraging domestic manufacturing and exports
• Applicable to exporters in the textile and apparel sector, including garments and made-ups. Exporters need to comply with certain conditions and criteria to avail the benefits
• Covers various taxes and levies imposed by both the state and central governments, excluding those that are subsumed under GST
• Rebate is provided in the form of duty credit scrips that can be utilized to offset various duties, including Basic Customs Duty (BCD) on imported goods. This helps exporters in reducing their overall production costs.
• Implemented by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, Government of India. Detailed guidelines and procedures are provided by DGFT for the benefit of exporters.