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RoSCTL Scheme

An Overview of RoSCTL Scheme

The RoSCTL Scheme, which will replace the outdated Rebate of State Levies programme and provide full state and federal tax refunds on clothing and made-ups, was authorised by the Indian government. The RoSCTL Scheme became operational on March 7, 2019.

The World Trade Organisation (WTO) has received a complaint from the USA against India, as is well known. The claim is that the Indian government violates WTO regulations by providing unfair advantages to Indian exporters through export subsidies like the MEIS scheme. As a result, the Ministry of Commerce has launched a new programme called the Rebate of State and Central Taxes and Levies (RoSCTL) Scheme. The RoSCTL scheme is only currently applicable to clothing and made-ups (i.e., Chapter 61, 62, & 63). Additionally, all industries would be included in this programme.

The Merchandise Exports from India Scheme (MEIS) has also been discontinued as of March 7, 2019, for export commodities falling under Chapters 61, 62, and 63, according to Public Notice No. 58/2015-20, dated January 29, 2020.

Refunds provided by the RoSCTL programme

The RoSCTL Scheme offers state and federal tax refunds. Please see the list of central taxes and levies that will be refunded under the RoSCTL scheme DGFT, as well as the list of state taxes and levies that will be refunded, below.

RoSCTL Scheme Discounts

According to Notification No. 14/26/2016-IT (Vol.II) dated 07.03.2019, schedules 1, 2, and 3 and 4 of the RoSCTL rates have been released:

Schedule 1 & 2 - The rates of state & central excise Levies for apparels and made-ups.

Schedule 3 & 4 - The State & central excise Levies rates for apparels export when the fabric is imported duty-free under a special Advance authorization scheme.

The RoSCTL Rates are given as follows:-

What does the RoSCTL Scheme DGFT's additional ad-hoc incentive entail?

The additional AD-HOC Incentive of 1% on Free-On-Board Value (FOB) has been announced by the Ministry of Textile (MoT).

The difference between the new rebate on State and central taxes and levies programme and the previous rebate on State levies (RoSL) and Merchandise Exports from India programme (MEIS) is used to determine the additional adhoc incentive.

Only when the benefits gained in RoSCTL are less than the sum of the benefits in RoSL and MEIS is an additional incentive of up to 1% offered. The Benefit is determined by the FOB value of the shipping invoice.

The extra Adhoc Incentive can be claimed from March 7 through December 31, 2019.

How is the RoSCTL scheme's benefit distributed?

Previously, as announced by the Ministry of Textiles and similar to Duty Drawback, the Rebate was directly transferred into the Exporter bank account under the Rebate of State Levies (RoSL) scheme.

However, the advantage under the new RoSCTL plan is provided in the form of duty credit scrips, just as MEIS scrips, together with an additional ad-hoc incentive. The nature of the RoSCTL scrips will allow for free transfer.

RoSCTL licences, like MEIS scrips, can be used to pay import duties or they can be sold on the open market for a higher price.

Application materials for the RoSCTL Scheme

Below documents are required, to process the online application for RoSCTL scheme:

  • Shipping Bill Copy
  • DGFT Digital Signature
  • RCMC (Registration Cum Membership Certificate) in good standing The applicant must submit separate online applications for each of the following:
  • S.B.s with export dates between March 7 and December 31, 2019
  • S.B.s with export dates after January 1, 2020, through March 31, 2020
    Please take note that the deadline for submitting an application for Duty Scrips under the RoSCTL scheme will be on January 29, 2020, per the most recent Public Notice No. 58/ 2015-2020 DT.
  • The deadline to submit an online application for shipping invoices with a Let export date between March 7 and December 31, 2019, is June 30, 2020.
  • The deadline to submit an online application will be one year from the date of the let export date for shipping invoices with a let export date between 1 January 2020 and 31 March 2020.

Procedure to apply for RoSCTL scheme:

The RoSCTL Scheme became operational on March 7, 2019. Applications for benefits must be submitted on the DGFT Portal for shipping bills before the end of 2021.

The RoSCTL scheme will be implemented starting on October 1st, 2021, in accordance with the most recent government advise.

Procedure to avail the benefits from DGFT
  • The applicant must use a digital signature to complete an online application.
  • The RoSCTL application does not require the linking of E-BRCs.
  • One application may accommodate 50 shipping bills.
  • According to Paragraph 3.09 (HBP), the option of splitting scrips is offered.
  • The port of registration for EDI ports from which export is made is up to the applicant.
  • Applications for EDI and non-EDI ports must be submitted separately.
  • The applicant cannot submit an application if their name is on the DEL (Denied Entities List) list.
  • The applicant has one year from the day that the shipping bills from ICE Gate were uploaded to the DGFT server to submit an application. Any application submitted after this date would be time-barred because late cut provisions would not be in effect.
  • Upon issuance, RoSCTL Licences are good for 24 months.
Procedure to avail the benefits from ICE Gate Portal

The claim must be lodged by the exporter in the EDI shipping bill by using particular scheme codes in order to get the advantages under the RoSCTL Scheme.

The following choices for the RoSCTL scheme are available with their own scheme-codes:

Scheme Code Scheme Description
60 Drawback and RoSCTL
61 EPCG, Drawback and RoSCTL
64 Drawback, Special Advance Authorization(Chapter 4.04A of FTP and RoSCTL)
65 EPCG, Drawback, Special Advance Authorization(Chapter 4.04A of FTP and RoSCTL)
  • The RoSCTL benefit would not be provided in the absence of valid scheme codes.
  • After filing the EGM, the custom would produce a scroll.
  • After the scroll is generated, an application must be made to get the scrip on the ICEGate interface.

Important RoSCTL Scheme Points to Remember

  • The RoSCTL scheme reimbursement is permitted as long as the foreign remittance for the shipped goods is received within the allotted time frame as per FEMA.
  • All RoSCTL scheme benefits must be repaid with 15% yearly interest if the sales revenues are not realised within the allotted time frame.
  • The exporter is expected to keep all original export paperwork and shipping bills on file for a period of three years following the day RoSCTL scrips were issued.
  • The applicant will be required to refund the whole benefit plus any relevant interest if they don't provide all of the original documents requested by the licencing body.

How can we assist you in claiming benefits under the RoSCTL scheme?

We assist our clients in the preparation of documents in providing hassle-free services.

  • Create and submit an online application to be eligible for a RoSCTL licence.
  • Our office registers the licence in accordance with custom.
  • We can help with licence sales and with the papers needed to transfer a licence to a buyer.
  • Do the online transfer as well by entering the information on the DGFT website.
  • Ask our customers about the advantages that apply to their products and the nation that they export from.
Frequently Asked Questions

Frequently Asked Questions

For those who export apparel and made-ups from India, the Rebate of State and Central Taxes and Levies (RoSCTL) Scheme is an export incentive programme that was implemented from March 7, 2019, through March 31, 2020. On the basis of the FOB value of export, the RoSCTL Scheme grants duty credits that are transferrable and sellable.

The Exporter may profit from the Rebate of State and Central Taxes and Levies (RoSCTL) Scheme till 31.03.2024, which was implemented on 07.03.2019.

Applicant has to file the online application form ANF-4R by using a digital signature on the DGFT website at http://dgft.gov.in to the concerned regional authority of DGFT.

The Rebate of State and Central Taxes and Levies (RoSCTL) Scheme is valid upto 31st March 2024.

The Merchandise Export from India Scheme (MEIS Scheme) and RoSL Scheme have been superseded by the RoSCTL Scheme.

The textile industry qualifies for the Rebate of State Levies (RoSL) Scheme to improve global market competitiveness and to generate employment opportunities in India. This programme offers a State Levies (RoSL) from customs rebate. And the Exporter's bank account was immediately credited with it. This programme was only available till March 6, 2019.

The RoSL Scheme differs from the RoSCTL Scheme in that the central tax and levies are not subsidised under the RoSL Scheme. However, under the RoSCTL plan, the DGFT will give the exporter a refund of all levies and taxes, both state and federal.

Yes. MEIS scheme benefit has been withdrawn for items of apparel and made-ups, i.e., Chapter 61, 62 & 63, w.e.f. 07th March 2019.

No, both can not be claimed simultaneously.

Yes. The Exporter is eligible for RoSCTL Scheme. The Exporter can get RoSCTL DGFT benefit after deducting the MEIS benefit amount.

No, Linking of E-BRCs is not required for applying under RoSCTL Scheme.

If a foreign remittance is not received in the future, the DGFT RA may issue RoSCTL scrip without an E-BRC. The authorization holder must then pay the concerned DGFT RA the rebate amount and interest.

When importing goods, RoSCTL scrips can be used to reduce the basic customs charge, or the authorisation holder can sell the RoSCTL licence at a profit. We can assist you in getting the best possible price for the licence.

Check Eligiblity -> Prepare Document -> Apply Online Application to DGFT <-> Get RoSCTL License -> Register RoSCTL License at customs -> Sell or Use RoSCTL License.

There is no government fee required for claiming the benefits under RoSCTL Scheme.

After submitting the online application at DGFT, it will take 2 or 3 days to process the online RoSCTL license.

The time limit for filing the RoSCTL application is within one year from the LEO date of the shipping bill.

Under the RoSCTL Scheme, there is no provision for late cuts. In order to receive the benefits of the RoSCTL scheme, the Exporter must submit their application within a year of the date on the shipping bill.

The RoSCTL licence holder must register the licence with customs when it has been issued by DGFT. Within one or two working days, we can assist you in registering the licence.

Yes. It is mandatory to register the scrips at customs. We can help you to register your license at customs.

Yes. The RoSCTL Licence can be transferred. The licence holder has two options for the licence: selling it or using it for imports. We can assist you in getting the best possible price for the licence.

Yes. The permission holder may sell the RoSCTL licence if the applicant is not importing any goods in violation of the RoSCTL licence.

Yes. We can help you to sell of RoSCTL license at the best rate.

No. GST is not applicable to the sale of the RoSCTL license.

No. RoSCTL license cannot be used for the payment of IGST. It can be used against basic customs duty only.

The RoSCTL scrip can be transferred online by the applicant using the DGFT digital signature. Additionally, the applicant must provide a bill of supply on company letterhead and a transfer letter that has been attested by a bank in order to transfer the RoSCTL scrip.

The RoSCTL licence is good for 24 months after the date the authorization was obtained once it has been approved by DGFT.

No. The RoSCTL Scrip should be utilized within the validity period, the Scrip can be considered as a Piece of Paper once the Validity gets expired and Revalidation of the Scrip shall not be permitted under the RoSCTL Scheme unless it has expired in the custody of any Govt. Authority.