The RoSCTL scheme will continue for export of garments/apparels, and made-ups till March 31, 2024, according to a press release from the Union Ministry of Textiles.

What is RoSCTL Scheme?

• RoSCTL stands for Rebate of State and Central Taxes and Levies (RoSCTL).
• It is an export incentive in the form of transferable and sellable duty credit scrips (certificate) offered on the basis of the value of the export.
• It replaces the Rebate of State Levies (RoSL) scheme, a monetary incentive scheme under which Customs would deposit the rebate directly into the exporter’s bank account.
• This scheme was seen as India’s reaction to the increasing international pressure on export incentives provided by the Indian government.

Why was this scheme introduced?

• The US, in particular, has been very vocal, urging the discontinuation of export incentive schemes like the Merchandise Exports from India Scheme (MEIS).
• It held that they flouted the WTO Agreement on Subsidies and Countervailing Measures.

Why was this scheme extended to textile sector?

• With a view to boost exports and job creation in the textile sector, the government has approved the continuation of the scheme.
• The scheme aims to help them cut high logistics and other costs and enable them to compete globally.

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