Introduction of RoSCTL scheme:-
In March 2019 Ministry of textile introduced the RoSCTL Scheme followed by the release of the RoSCTL rate list and a CBIC notification on the same scheme. Full form of the scheme is the Rebate of State and central Taxes and Levies (RoSCTL), it is an export incentive scheme in which exporters can avail the benefits in the form of transferable duty Credit Scrip which can be sold in open market at discounted rate. RoSCTL replaces Rebate of state levies (RoSL) scheme which was monetary incentive scheme under which customs would deposit the rebate directly into the account of exporters.
The Government incentives in India were not the WTO compliant & the US was very vocal and urging the discontinuation of existing MEIS Scheme for the goods exporters and other similar schemes. The introduction of RoSCTL scheme was the reaction to the increasing international pressure on export incentives given by the Indian Government. The US also objected to Export Oriented Units(EOU), electronic Hardware Technology Park, Export Promotional Capital goods, Special Economic Zones, DFIA Scheme etc.
Despite the WTOs objection, the MEIS looks set to continue till 31st march 2021 considering the CoVID – 19 outbreak.
It is implemented by scrip based online system for the exports of garments and made ups.
One 8th March 2019, Notification issued by Ministry of textile regarding the rates under the RoSCTL scheme, There is 4 schedule specified in the notification. Schedule 1 and 2 specify the central and state taxes and levies for apparel and made ups,
Schedule 3 and 4 specify the central and state taxes applicable on the apparel exports when the fabrics imported under special advance authorizations.
Depending on the rate exporters are issued duty credit scrip. All the details and documents must be retained for at least three years from the date of issue of license, the concerned department may ask for the documents and failing to produce documents could lead to repay the scrip value with the interest as penalty under the FTDR Act.
Benefits of RoSCTL Scheme:-
- Benefits under RoSCTL is available to the exporters of readymade garments and made ups. The aim of the scheme is to cut high logistics cost and other costs to make goods competitive in global market.
- The benefits can be taken on the exports after 1st April 2019 under RoSCTL Scheme.
Procedure to claim the benefits under RoSCTL scheme:-
- Online application shall be filed on DGFT website along with application in the ANF 4R with the help of Digital signature Certificate.
- In one application 50shipping bills can be clubbed.
- There is no late cut clause applicable into this scheme and scheme is available till 31st march 2020.
- For the exports made from non – EDI ports, separate application has to be filed for each export
- It cannot be clubbed with EDI ports application.
- Application shall be processed through online DGFT portal and scrip issued on the basis of online check mechanism
- Depending the option selected it can be handed over or given by post.
Government of India Approved the RoDTEP Scheme which will replace existing MEIS Scheme and RoSCTL scheme in phased manner, RoSCTL scheme is the earlier version of RoDTEP scheme.