Last Updated: April 18, 2026 by RASP International Editorial Team

Export Incentives

RoSCTL Scheme

Rebate of State and Central Taxes and Levies for apparel and textile exports. Extended to 30 September 2026.

What is RoSCTL and why it matters for apparel exporters

RoSCTL, the Rebate of State and Central Taxes and Levies, is an export incentive scheme for Indian apparel, garment, and made up textile exporters. Introduced on 7 March 2019, it refunds embedded state and central taxes that are not covered under the Goods and Services Tax regime. These are the hidden costs that make Indian textiles more expensive than they should be: electricity duty on manufacturing, VAT on captive fuel, mandi tax on raw cotton, stamp duty on export paperwork, excise on inputs, and a long list of state levies that never appear on a tax invoice but quietly compound into the final FOB price.

The scheme’s core design principle is zero rating of exports. When you ship a garment from India, no domestic tax should remain embedded in it. GST already handles most of this. RoSCTL fills the gap for taxes that sit outside the GST framework. The rebate is issued as a transferable duty credit e-scrip. You can use the scrip to pay Basic Customs Duty on imports or sell it to another importer on the ICEGATE scrip transfer module at market discount.

For Indian apparel exporters competing with Bangladesh, Vietnam, and Turkey, RoSCTL is not optional. The margin difference between a buyer choosing Bangladesh and choosing India is often less than 2 percent. RoSCTL bridges that gap for labour intensive categories.

RoSCTL extension to September 2026: what changed in April 2026

On 1 April 2026, the Ministry of Textiles formally extended RoSCTL through 30 September 2026 or until approval of the scheme under the 16th Finance Commission cycle, whichever is earlier. The extension was notified without any changes to existing guidelines, rates, or eligibility criteria. Read the full PIB announcement for the official language. Industry coverage is available from TaxGuru and Technical Textiles.

The Apparel Export Promotion Council publicly welcomed the extension and has asked the government for a longer five year commitment to give exporters planning visibility. The current extension is effectively a bridge measure while the 16th Finance Commission finalises the longer term framework for textile export incentives.

Critical point for exporters who also export non apparel textiles: RoDTEP continues in parallel for textile products outside Chapters 61, 62, and 63 of the ITC HS. Our RoDTEP 2026 guide has the latest on that scheme, including the 50 percent rate cut that applies to non agri RoDTEP lines.

Who is eligible for RoSCTL

RoSCTL coverage is strictly defined by HS code. Only products falling under three specific chapters of the Indian Trade Classification Harmonised System qualify:

ITC HS Chapter 61

Articles of apparel and clothing accessories that are knitted or crocheted. T shirts, polo shirts, jerseys, pullovers, cardigans, knitted jackets, innerwear, pantyhose, and similar products.

ITC HS Chapter 62

Articles of apparel and clothing accessories that are not knitted or crocheted. Woven shirts, blouses, trousers, dresses, suits, overcoats, and the majority of tailored garments.

ITC HS Chapter 63

Other made up textile articles. Bed linen, towels, curtains, blankets, table linen, kitchen linen, sacks, bags, tarpaulins, tents, camping goods, and other home textiles and made up products.

Textile yarn, fabric, fibre, and semi finished textile products fall under Chapters 50 to 60 and are not covered by RoSCTL. Those products claim RoDTEP instead. See our RoDTEP Scheme overview for how the two schemes interact across the textile value chain. You cannot claim both schemes on the same shipping bill line item. The HS code drives the scheme.

How RoSCTL actually works: end to end mechanics

1. Shipping bill declaration

RoSCTL must be claimed at the time of shipping bill filing on ICEGATE. Your Customs House Agent ticks the RoSCTL flag in the shipping bill. If the flag is missed at this stage, the claim is lost. It cannot be added retrospectively. Always verify the shipping bill copy before Let Export Order.

2. HS classification

Correct 8 digit HS code is foundational. A wrong 8 digit code can drop your shipment into a chapter not covered by RoSCTL or map it to a different rebate percentage. Classification disputes with Customs are the most common RoSCTL rejection reason for first time filers.

3. Customs processing and transmission

Once Let Export Order is granted, Customs transmits the shipping bill data to the DGFT system. This happens automatically through the ICEGATE to DGFT bridge. No separate filing is required by the exporter.

4. E scrip generation on DGFT portal

The RoSCTL amount is calculated by the system based on the notified rate for your HS line, applied to the FOB value declared in the shipping bill. The e scrip is generated and credited to your IEC linked account on the DGFT e scrip module. Typical turnaround from LEO to scrip credit is 15 to 45 days, depending on realisation timelines.

5. Bank Realisation Certificate linkage

The e scrip is provisional until the export proceeds are realised and the eBRC is uploaded by your bank on the RBI EDPMS platform. Non realisation within the FEMA window leads to the scrip being clawed back. Stay on top of eBRC status monthly.

6. Utilisation or transfer

You have two choices. First, use the scrip to pay Basic Customs Duty on imports by your own IEC. Second, transfer the scrip to another IEC holder on the ICEGATE scrip transfer module. Market discount is typically 2 to 4 percent of face value. Scrips have a two year validity from date of issue.

Why RoSCTL is critical for MSME apparel exporters

Micro, Small and Medium Enterprises make up the majority of India’s apparel export base. These units operate on 5 to 12 percent net margins. A 3 to 7 percent RoSCTL rebate directly improves the bottom line. For a unit exporting Rs 10 crore per year, that translates into Rs 30 to 70 lakh of incremental annual rebate revenue. For an MSME, that is the difference between surviving a bad season and closing the unit.

Bangladesh exports enjoy zero duty access to most major markets through LDC preferences. Vietnam benefits from multiple FTAs including CPTPP. Turkey enjoys EU customs union access. India’s apparel exporters compete from a standing start and need every tax rebate the system offers. The policy analysis from earlier this year captures the geopolitical and cost pressures pushing India’s textile exporters into tighter margins.

This is why working with a specialist matters. RASP International runs RoSCTL audits for MSME units that have never claimed the scheme and are leaving lakhs on the table every quarter.

Common reasons RoSCTL claims fail

Missing RoSCTL flag on shipping bill

The CHA did not tick the RoSCTL option at shipping bill generation. By the time Customs processes the bill, the option is closed. Train your CHA to always default to RoSCTL on Chapter 61, 62, 63 shipments.

Wrong 8 digit HS classification

Close classifications in the same 6 digit family get different rebate percentages. A garment classified under 6109 10 00 (knitted cotton T shirts) versus 6109 90 90 (T shirts of other materials) can mean meaningfully different rebates. Use AEPC’s HS classification helpline or work with our DGFT consultants for borderline cases.

BRC not uploaded by bank

Your authorised dealer bank must upload the eBRC within a defined window. If the bank is slow or the BRC carries an incorrect shipping bill mapping, your scrip is held. Check your EDPMS dashboard monthly.

Mismatch between shipping bill and invoice

Quantity, value, or HS code mismatches between the commercial invoice and the shipping bill trigger system holds. Reconcile before filing.

RCMC expired

An active RCMC from AEPC is required for RoSCTL. If your membership lapses, the scrip flow pauses. Set calendar reminders 90 days before RCMC expiry.

Unrealised proceeds beyond FEMA timeline

If export proceeds do not realise within the RBI prescribed period, the RoSCTL scrip is clawed back. Follow up overseas buyers aggressively on payment. Use ECGC or trade finance if realisation risk is high.

RoSCTL versus RoDTEP versus Duty Drawback

Indian apparel exporters often ask which scheme to claim. The answer depends on the HS code and whether inputs carry meaningful imported duty incidence.

RoSCTL for Chapters 61, 62, 63

This is the default scheme for apparel and made ups. Claim it on every shipping bill.

RoDTEP for other textile HS lines

For fibre, yarn, fabric, and non apparel textile products, RoDTEP is the route. Following the February 2026 rate cut, RoDTEP rates for non agri HS lines are 50 percent of earlier notified levels.

Duty Drawback in parallel

If your apparel production uses imported inputs with Basic Customs Duty incidence, you can also claim Duty Drawback under the All Industry Rate or Brand Rate framework. Drawback and RoSCTL are claimed on separate mechanisms and can be pursued in tandem. A full stack claim of RoSCTL plus Drawback for eligible apparel lines often delivers the highest total rebate.

Our comparison guide, RoDTEP vs Duty Drawback: Which One Should Indian Exporters Claim, breaks down the decision tree in detail.

Have more questions?
Visit our complete EXIM & DGFT Knowledge Base with 50+ answers about Foreign Trade Policy, export schemes, customs, and more.

Frequently Asked Questions

Is RoSCTL the same as GST refund?

No. RoSCTL and GST refund are separate schemes. GST refund (under Rule 89 or 96 of CGST) handles output GST on exports. RoSCTL handles embedded state and central taxes that are outside the GST framework entirely. You can and should claim both in parallel for apparel exports.

Can I claim RoSCTL on samples and gift shipments?

RoSCTL is claimed against commercial exports declared on a shipping bill with realisation expected through a banking channel. Sample shipments under courier mode or gift shipments without commercial value typically do not qualify. Consult our DGFT team for edge cases.

What happens when RoSCTL expires on 30 September 2026?

The government has two paths. The scheme may be re extended as a bridge measure, or it may be absorbed into a longer term framework under the 16th Finance Commission cycle. AEPC and industry bodies are lobbying for a five year continuation. Watch announcements from the Ministry of Textiles and PIB through August and September 2026.

How long does an RoSCTL e scrip remain valid?

Two years from the date of issue. Plan utilisation or transfer within that window. Scrips that expire unused lose their value.

Can I transfer my RoSCTL scrip to a third party?

Yes. RoSCTL scrips are fully transferable through the ICEGATE scrip transfer module. Market discount is typically 2 to 4 percent of face value depending on scrip size and buyer demand.

Does RoSCTL apply to exports to SEZs?

Exports to SEZs are treated as deemed exports and have separate treatment. Physical exports from DTA units outside India are the primary RoSCTL beneficiaries.

Is there a rebate cap per exporter?

Unlike MEIS which had a Rs 2 crore cap during its final phase, RoSCTL has no upper limit per exporter. Any eligible exporter can claim full rebate at the notified rate on eligible exports.

What rate applies to my specific garment?

RoSCTL rates vary by HS code at 8 digit level. Check the official ICEGATE portal or the notified rate schedule under Appendix 4R for your specific classification. If classification is borderline, talk to our team for a paid HS audit.

How RASP International handles your RoSCTL claims

Initial audit

We audit your past 12 to 24 months of shipping bills to identify missed RoSCTL claims and quantify the potential rebate recovery. Most clients find unclaimed amounts they had no idea existed.

CHA coordination

We work directly with your Customs House Agent to ensure every eligible shipping bill carries the RoSCTL flag with correct 8 digit HS classification.

eBRC and EDPMS tracking

We monitor your eBRC generation and realisation status on the RBI EDPMS dashboard. Unresolved bills get escalated to your banker for resolution.

E scrip management

We reconcile e scrip credits monthly, advise on utilisation versus transfer, and if transferring, help you find counterparty buyers at market rates.

Retrospective claims

Where you missed filings within the allowable window, we file supplementary claims and coordinate with Customs and DGFT Regional Authorities for scrip issuance.

Portfolio level incentive strategy

RoSCTL fits into a broader incentive stack. We ensure you are also maximising RoDTEP, Duty Drawback, Advance Authorisation, and all other export incentives relevant to your product and market mix.

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