TL;DR
- The RoSCTL Scheme (Rebate of State and Central Taxes and Levies) refunds eligible textile and apparel exporters for embedded state and central taxes that GST zero-rating does not cover, through transferable duty credit scrips.
- Eligibility runs to textile and apparel exporters who file duty credit claims correctly in the shipping bill; SEZ, EPZ, trans-shipped, and used goods are excluded, and records must be kept for three years.
- The scheme has been extended until March 31, 2026, giving exporters cost certainty. Claiming the rebate is only half the job: you still have to collect and realise the export payment, which is where a cross-border payments partner comes in.
A Tiruppur garment exporter can win a large US order, ship on time, and still watch the margin thin out before the money lands. India's exports are zero-rated under GST, yet several state and central taxes stay baked into the manufacturing and logistics chain, and they are not refunded through the usual mechanisms. Those unrecovered taxes raise the real cost of exporting and chip away at competitiveness in global markets.
The RoSCTL Scheme (Rebate of State and Central Taxes and Levies) was introduced by the Government of India to close that gap.
This guide covers what the RoSCTL Scheme is, why it exists, its benefits, who qualifies, what is excluded, and how duty credit scrips work in practice.
The RoSCTL Scheme (Rebate of State and Central Taxes and Levies) is a Government of India initiative, introduced in March 2019, that refunds embedded state and central taxes and levies incurred while manufacturing and transporting textile and apparel export goods, where those taxes are not reimbursed through any other mechanism. Eligible exporters receive the rebate as transferable duty credit scrips, which lowers export costs and improves competitiveness abroad.
The rebate covers several state taxes and levies, including:
It also covers eligible central taxes and levies, such as:
Initially launched until March 31, 2020, the scheme has been extended multiple times to give exporters policy certainty, with the latest extension announced until March 31, 2026.
Exports from India are broadly exempt from domestic taxes, but exporters still absorb several embedded state and central levies across manufacturing, transportation, and logistics. Those hidden costs raise the total cost of exporting and make Indian textile products less competitive internationally.
The RoSCTL Scheme was introduced to reimburse those eligible embedded taxes and levies, so exporters can cut operating costs and protect profitability. In practice, the scheme aims to:
The scheme gives textile exporters several concrete advantages.
Reimbursing eligible state and central taxes lowers the total cost of making and shipping textile products, so exporters can hold competitive prices in global markets.
Eligible exporters receive transferable duty credit scrips that can pay customs duties or be transferred to another importer holding a valid Import Export Code (IEC) and ICEGATE registration. That frees up working capital and adds financial flexibility.
Lower production costs let Indian exporters price more keenly while keeping healthier margins.
The scheme supports a wide range of textile and apparel products, including eligible cotton, silk, knitted, and woven garments, so participation is not limited to a narrow niche.
Textile businesses often book orders months ahead. The extension of the scheme lets them forecast costs, plan cash flow, and make expansion decisions with more confidence.
The scheme is open to textile and apparel exporters who meet the prescribed government conditions. Certain goods and export routes are excluded.
The following are not eligible for RoSCTL benefits:
Exporters claiming benefits should retain shipping bills and supporting export documents for at least three years from the date the duty credit scrip is issued.
A duty credit scrip is a transferable certificate issued to eligible exporters against the rebate amount approved under the scheme. It gives exporters flexibility: they can offset eligible customs duties or transfer the scrip to another importer with a valid IEC and ICEGATE registration.
Key features of duty credit scrips:
Exporters often confuse the two, because both refund embedded taxes that other mechanisms miss. The difference is scope.
In short, RoSCTL is the textile-specific scheme, while RoDTEP is the wider one covering many sectors. For the latest rates and product coverage, refer to current government notifications.
Claiming the rebate is only one half of an export sale. You still have to get paid, and get the proof of payment your bank and the RBI expect.
A cross-border payments partner matters here for two reasons. First, the payment has to actually go through: international card payments fail more often than domestic ones, and every failed collection is revenue you shipped for but never realised. Second, once the money lands you need clean documentation, above all the FIRA (Foreign Inward Remittance Advice, the proof of an inward foreign payment), to close the loop on realisation of export proceeds.
PayGlocal is an RBI-authorised cross-border payments provider (authorised as a Payment Aggregator - Cross Border - Inward & Outward, PA-CB-I&O, and as an Online Payment Aggregator, PA-O) and part of the ICICI Bank Group. It helps Indian exporters collect international payments at a high Payment Success Rate (PSR, the share of attempted payments that succeed) and auto-issues the FIRA after settlement, with funds settled in INR. So the incentive lowers your cost base, and reliable collection makes sure the sale you shipped actually turns into money in the bank.
The RoSCTL Scheme strengthens India's textile export ecosystem by letting eligible exporters recover embedded state and central taxes that would otherwise inflate export costs. Through transferable duty credit scrips, it improves cash flow, sharpens global competitiveness, and supports long-term growth.
The rebate lowers what it costs to export. Collecting the payment reliably is what turns a shipped order into realised revenue, which is why pairing the incentive with dependable cross-border payment infrastructure pays off when you expand into new markets.
The RoSCTL Scheme (Rebate of State and Central Taxes and Levies) was introduced by the Government of India to close that gap.
RoSCTL Scheme lets eligible textile and apparel exporters claim rebates on embedded state and central taxes that other schemes leave on the table. Lower tax drag means better cash flow, sharper international pricing, and room to expand into new markets.
This guide covers what the RoSCTL Scheme is, why it exists, its benefits, who qualifies, what is excluded, and how duty credit scrips work in practice.
What is the RoSCTL Scheme?
The RoSCTL Scheme (Rebate of State and Central Taxes and Levies) is a Government of India initiative, introduced in March 2019, that refunds embedded state and central taxes and levies incurred while manufacturing and transporting textile and apparel export goods, where those taxes are not reimbursed through any other mechanism. Eligible exporters receive the rebate as transferable duty credit scrips, which lowers export costs and improves competitiveness abroad.
The rebate covers several state taxes and levies, including:
- VAT on fuel used for transportation
- Electricity duty
- Agricultural and market taxes
- Stamp duty on export documentation
- Embedded State GST (SGST) on eligible production inputs
- Taxes on coal used for electricity generation
It also covers eligible central taxes and levies, such as:
- Central excise duty on transportation fuel
- Embedded Central GST (CGST) on eligible production inputs
- Compensation Cess on coal used for electricity generation
- Eligible taxes on purchases from unregistered suppliers
Initially launched until March 31, 2020, the scheme has been extended multiple times to give exporters policy certainty, with the latest extension announced until March 31, 2026.
Why was the RoSCTL Scheme introduced?
Exports from India are broadly exempt from domestic taxes, but exporters still absorb several embedded state and central levies across manufacturing, transportation, and logistics. Those hidden costs raise the total cost of exporting and make Indian textile products less competitive internationally.
The RoSCTL Scheme was introduced to reimburse those eligible embedded taxes and levies, so exporters can cut operating costs and protect profitability. In practice, the scheme aims to:
- Reduce the tax burden on textile exporters
- Improve India's competitiveness in global markets
- Encourage higher export volumes
- Support the growth of the textile and apparel industry
- Give exporters greater financial flexibility
Benefits of the RoSCTL Scheme
The scheme gives textile exporters several concrete advantages.
Reduced export costs
Reimbursing eligible state and central taxes lowers the total cost of making and shipping textile products, so exporters can hold competitive prices in global markets.
Improved cash flow
Eligible exporters receive transferable duty credit scrips that can pay customs duties or be transferred to another importer holding a valid Import Export Code (IEC) and ICEGATE registration. That frees up working capital and adds financial flexibility.
Stronger global competitiveness
Lower production costs let Indian exporters price more keenly while keeping healthier margins.
Broad product coverage
The scheme supports a wide range of textile and apparel products, including eligible cotton, silk, knitted, and woven garments, so participation is not limited to a narrow niche.
Stable export planning
Textile businesses often book orders months ahead. The extension of the scheme lets them forecast costs, plan cash flow, and make expansion decisions with more confidence.
Eligibility and restrictions under the RoSCTL Scheme
The scheme is open to textile and apparel exporters who meet the prescribed government conditions. Certain goods and export routes are excluded.
The following are not eligible for RoSCTL benefits:
- Trans-shipped goods
- Goods subject to export duty or Minimum Support Price (MSP)
- Goods manufactured or exported from Special Economic Zones (SEZs) or Export Processing Zones (EPZs)
- Reconditioned or previously used goods
- Goods for which duty credit claims were not filed through the Customs automated system in the shipping bill or bill of export
Exporters claiming benefits should retain shipping bills and supporting export documents for at least three years from the date the duty credit scrip is issued.
How do duty credit scrips work?
A duty credit scrip is a transferable certificate issued to eligible exporters against the rebate amount approved under the scheme. It gives exporters flexibility: they can offset eligible customs duties or transfer the scrip to another importer with a valid IEC and ICEGATE registration.
Key features of duty credit scrips:
- Can be used to pay eligible customs duties
- Transferable to another importer with a valid IEC and ICEGATE registration
- Improve working capital and liquidity
- Support better financial planning
RoSCTL vs RoDTEP
Exporters often confuse the two, because both refund embedded taxes that other mechanisms miss. The difference is scope.
| RoSCTL Scheme | RoDTEP Scheme | |
|---|---|---|
| Full form | Rebate of State and Central Taxes and Levies | Remission of Duties and Taxes on Exported Products |
| Sector focus | Textile and apparel exports specifically | A broad range of export sectors |
| What it refunds | Embedded state and central taxes and levies on textile/apparel exports | Embedded duties and taxes not refunded through other mechanisms, across sectors |
| Benefit form | Transferable duty credit scrip | Transferable duty credit scrip |
In short, RoSCTL is the textile-specific scheme, while RoDTEP is the wider one covering many sectors. For the latest rates and product coverage, refer to current government notifications.
Collecting the export payment after you claim the rebate
Claiming the rebate is only one half of an export sale. You still have to get paid, and get the proof of payment your bank and the RBI expect.
A cross-border payments partner matters here for two reasons. First, the payment has to actually go through: international card payments fail more often than domestic ones, and every failed collection is revenue you shipped for but never realised. Second, once the money lands you need clean documentation, above all the FIRA (Foreign Inward Remittance Advice, the proof of an inward foreign payment), to close the loop on realisation of export proceeds.
PayGlocal is an RBI-authorised cross-border payments provider (authorised as a Payment Aggregator - Cross Border - Inward & Outward, PA-CB-I&O, and as an Online Payment Aggregator, PA-O) and part of the ICICI Bank Group. It helps Indian exporters collect international payments at a high Payment Success Rate (PSR, the share of attempted payments that succeed) and auto-issues the FIRA after settlement, with funds settled in INR. So the incentive lowers your cost base, and reliable collection makes sure the sale you shipped actually turns into money in the bank.
Conclusion
The RoSCTL Scheme strengthens India's textile export ecosystem by letting eligible exporters recover embedded state and central taxes that would otherwise inflate export costs. Through transferable duty credit scrips, it improves cash flow, sharpens global competitiveness, and supports long-term growth.
The rebate lowers what it costs to export. Collecting the payment reliably is what turns a shipped order into realised revenue, which is why pairing the incentive with dependable cross-border payment infrastructure pays off when you expand into new markets.
