Government Extends RoSCTL Scheme for Textile Exports

The Government of India has announced an extension of the Rebate of State and Central Taxes and Levies (RoSCTL) Scheme for exports of apparel, garments, and made-ups until September 30, 2026, or until it is subsumed under the cycle of the 16th Finance Commission, whichever is earlier.

Originally launched on March 7, 2019, the RoSCTL scheme is designed to refund embedded taxes and levies that are not reimbursed under any other export promotion schemes. It is based on the principle of zero-rating of exports, ensuring that exported products are free from domestic tax burdens, thereby enhancing their global competitiveness.

According to the Ministry of Textiles, the scheme has emerged as a crucial support mechanism for the textile export sector. It plays a particularly important role in aiding Micro, Small and Medium Enterprises (MSMEs), which constitute a significant share of beneficiaries under the scheme.