The Rebate of State and Central Taxes and Levies (RoSCTL) Scheme is entitled to the export of apparel and made-ups only. It’s an export Incentive Scheme that provides duty credit transferable and sellable scrips on the FOB value of export.
At the World Trade Organisation (WTO), a complaint has been filed against the Indian Government by the USA. The USA has claimed that the Government of India (GOI) grants undue benefits to the Indian exporter under various export incentive schemes, such as the MEIS scheme, which is against the WTO rules and regulations. In the future, the scheme would be extended to benefit all the sectors.
RoSCTL Scheme was approved by the cabinet as it extended rebates all state and central taxes for government and made-ups. This replaced the Rebate of State Levies (RoSL) Scheme which only gave rebates of state taxes.
Additional Ad-Hoc Incentive under Rebate of State and Central Taxes and Levies (RoSCTL) Scheme
An additional AD-HOC Incentive of 1% on Free-On-Board (FOB) has been announced by the Ministry of Textile (MoT).
This additional Adhoc Incentive is estimated by the difference between the new Rebate on State and Central Taxes and Levies (RoSCTL) Scheme and the old Rebate on State Levies (RoSL) and the Merchandise Exports from India Scheme (MEIS).
The benefit provided under the RoSCTL Scheme
Earlier, the rebate was directly credited into the exporter’s bank account under the RoSL Scheme as specified by the Ministry of Textiles just like the Duty Drawback.
However, the RoSCTL Scheme provides benefits along with additional ad-hoc incentives in the form of duty credit scrips like the MEIS scrips. The RoSCTL scrips are freely transferable in nature. The RoSCTL License or scrip can be used as a mode of payment of import duties or can even be sold at premium rates in the open market.
Required documents to claim RoSCTL Scheme benefits
The following documents are required for the online application process of attaining benefits under the RoSCTL Scheme:
Shipping Bill Copy
DGFT Digital Signature
Valid RCMC (Registration Cum Membership Certificate)
Points to keep in mind about the RoSCTL Scheme
The rebate under the Rebate of State and Central Taxes and Levies (RoSCTL) Scheme is issued subject to the condition that foreign remittance for the shipment made will be realized in the stipulated time frame as per Foreign Exchange Management Act (FEMA).
All the RoSCTL Scheme benefits have to be returned with 15% annual interest if the sales proceeds aren’t realized within the specified time.
The exporter must maintain all the original documents including the shipping bills for a time period of about 3 years from the date of issuance of the RoSCTL scrips.
The applicant would be liable to return the entire benefits along with the applicable interest if they aren’t able to submit all the original documents required by the licensing authority.
Why seek assistance from the DGFT Gurus to claim benefits under the RoSCTL Scheme?
To provide smooth functioning of the process, the DGFT Gurus extend their expert services:
Our expert advisors assist in the preparation and submission of online applications to attain the RosSCTL License under the Rebate of State and Central Taxes and Levies (RoSCTL) Scheme.
Registrations for the RoSCTL License are done in custom from our office itself.
Our export experts extend their assistance in the selling of licenses. We provide help in documentation for transferring the RoSCTL License to the buyer.
The DGFT Gurus also do the online transfer by recording the details on the DGFT website itself.
Our expert DGFT Consultants provide their DGFT Consultancy services to make the clients aware of the benefits they can avail of on the products and the country in which they export.
Why get assistance from the DGFT Gurus?
The DGFT Gurus are in the field for over 30 years with more than 7000 cases and 1000+ happy clients.
With our expert advisors, the clients will be able to get their hands on the process conveniently. We assist our client in the compilation of exports and analysis for checking the eligibility to claim the Export House Certificate.
The documentation and application are handled by our professional export advisors and regular follow-ups are taken from the authorities to prevent any sort of delay.
Our team of DGFT Consultants works dedicatedly towards their responsibility, thus, they are 24/7 available at your service to maximize your benefits.
30+ Years of Experience, dedicated team of DGFT Experts
The official website of DGFT has still not laid out any detailed procedure to claim the benefits under RoSCTL. The issuance of scrips and their utility is still being figured out. Until the release of the details, the government has decided that one can file the claims for RoSCTL by filling it under the existing scheme codes for the erstwhile RoSL
The Rebate of State and Central Taxes and Levies (RoSCTL) Scheme is only available to the export of made-ups and apparel only. It is an incentive scheme for export that provides duty credit transferable and sellable scrips on the FOB value of export.
RoSCTL Scheme is approved by the cabinet as it extended rebates all state and central taxes for government and made-ups. This replaced the Rebate of State Levies (RoSL) Scheme which only gave rebates of state taxes.