The government has announced the 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 the scheme is approved under the 16th Finance Commission cycle, whichever comes earlier. This extension will operate under the existing guidelines without any alterations, as confirmed by the Ministry of Textiles. Launched on March 7, 2019, the RoSCTL scheme’s objective is to refund embedded state and central taxes and levies that are not covered by other export incentive mechanisms.
The RoSCTL initiative aims to ensure that exported products are not burdened with unrefunded taxes, aligning with the zero-rating principle for exports and enhancing the global competitiveness of Indian textile shipments. Particularly beneficial for micro, small, and medium enterprises (MSMEs) in the textile export sector, the scheme has become a vital support system for these entities. Industry stakeholders emphasize the significance of such incentives in enabling Indian exporters to effectively compete with global counterparts in a challenging market environment.
In addition to the RoSCTL extension, the government has prolonged the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme from April 1, 2026, to September 30, 2026. The RoDTEP scheme covers textile products not included under RoSCTL, especially those outside Chapters 61, 62, and 63 of the ITC (HS) classification. By running both schemes concurrently, the government aims to offer comprehensive coverage throughout the textile value chain.
This strategic move is anticipated to ensure that a wide array of textile exports benefit from tax remission, thereby reducing cost burdens and enhancing competitiveness in international markets. The continuity of these schemes underscores the government’s commitment to maintaining policy stability for exporters and bolstering India’s standing in the global textile trade.
