The Union Government has announced the extension of Rebate of State and Central Taxes and Levies (RoSCTL) till 31 March 2024. The scheme was approved by the Union Cabinet on 14 July 2021 to make Indian textiles internationally competitive.
It will be applicable from 1 January to 31 March 2024 for apparels and made-ups (HS Code 61, 62 and 63).
Ministry of Textiles has issued a notification regarding continuation along with scheme guidelines.
Industry believes that RoSCTL extension is a first step of Government towards US $ 400 billion export target. The scheme will ensure refund of embedded taxes, cesses and duties.
Welcoming the Government’s notification on extension of RoSCTL on exports, Apparel Export Promotion Council (AEPC) Chairman A. Sakthivel said, “The decision adds to the stability of the export policy of textiles. We now look forward to being a stronger global player with this continued RoSCTL support. The scheme will promote start-ups and entrepreneurs to start exporting their products. It will rejuvenate the textiles sector and, in three years, the Indian textile value chain can attain annual exports of US $ 100 billion.”
Notably, MoT will conduct annual impact analysis of the scheme. For a broad level monitoring, an output outcome framework shall be notified separately.