Industry seeks five-year RoSCTL extension and higher government allocation.
The Ministry of Textiles has extended the Rebate of State and Central Taxes and Levies (RoSCTL) Scheme for exports of apparel, garments and made-ups until 30 September 2026, or until the scheme receives approval for the 16th Finance Commission cycle from the competent authority, whichever is earlier. The extension has been granted without any changes to the existing guidelines.
Introduced on 7 March 2019, the RoSCTL Scheme is designed to reimburse embedded State and Central taxes and levies that are not refunded through other mechanisms. By reducing the tax burden embedded in exported products, the scheme aims to improve the competitiveness of Indian apparel and made-ups in international markets.
Based on the principle of zero-rating exports, RoSCTL enables exporters to receive remission of eligible taxes and levies that would otherwise remain embedded in export costs. It has emerged as an important support mechanism for the textile export industry, particularly for MSMEs, which account for a significant proportion of the scheme’s beneficiaries.
Alongside RoSCTL, the Government has continued the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme from 1 April 2026 to 30 September 2026. RoDTEP extends benefits to textile products that are not covered under RoSCTL, including products outside Chapters 61, 62 and 63 of the ITC (HS).
The simultaneous continuation of RoSCTL for apparel and made-ups and RoDTEP for other textile products provides broader coverage across the textile value chain. The measures are expected to support exporters in maintaining their competitiveness in global markets, provide greater policy certainty to MSMEs, and reinforce the Government’s efforts to strengthen India’s textile export ecosystem.