A new scheme for rebate of central and state taxes on the exports of garments and made-ups has been announced.



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Scheme to Rebate State and Central Embedded Taxes to Support the Textile Sector

Rebate Rates

Extension notification

Inception date: 07 Mar 2019 | Removal date: open ended

Tax-based export incentive

On 7 March 2019, the Indian Ministry of Textiles has through Notification No. 14/26/2016-IT (Vol II) announced the Scheme for Rebate of State and Central Taxes and Levies on of Garments and Made-ups (RoSCTL) to support the exports of garments and made-ups by providing rebate of central and state taxes paid on the production of the same. The Scheme replaces earlier schemes announced in June 2016 (for garments, to expire September 2019) and December 2016 (for made ups, to expire March 2020). According to the Notification, the new Scheme has been announced because the earlier schemes weren't providing a rebate for the entire central and state taxes present in the export costs. 

The scheme is effective from the date of the Notification and will be valid until 31 March 2020.

The rates of rebate for the same have been announced on 8 March 2019. For garments, two rates have been specified, a lower rate if the fabric (including interlining) used in the production has been imported under the Special Advance Authorisation Scheme and a higher rate if not. The Advance Authorisation Scheme allows duty free imports of raw materials for manufacturing of export goods. For made-ups, only 1 rate has been specified.

The rebate rates notified will be calculated on Free on Board value of the exported goods.

On 25 March 2020, the RoSCTL scheme has been continued after 31 March 2020 without any change. The scheme will stay active until it is merged with the Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) announced on 13 March 2020.