Govt okays continuation of apparel exports incentive scheme till Mar 2026

The government on Thursday approved the continuation of an export incentive scheme - RoSCTL - for apparel, garments and made-ups up to March 31, 2026.

The Rebate of State and Central Taxes and Levies (RoSCTL) scheme is aimed at compensating for the state and central taxes and levies in addition to the rebate provided under duty drawback scheme on export of apparel/garments and made-ups.

"The Union Cabinet chaired by Prime Minister Narendra Modi approved the continuation of scheme for RoSCTL for export of apparel/garments and made-ups up to March 31, 2026," an official statement said.

It said that the move will provide a stable policy regime which is essential for long-term trade planning, more so in the textiles sector where orders can be placed in advance for long-term delivery.

"The continuation of RoSCTL will ensure predictability and stability in policy regime, help remove the burden of taxes and levies and provide level-playing field on the principle that goods are exported and not domestic taxes," it said.

The scheme was launched in 2020. Earlier it was extended till March 2024.

The present extension up to March 2026 would help in enhancing export competitiveness of garment and made-up sectors.

"It makes apparel/garments and made-up products cost-competitive and adopt the principle of zero-rated export. The other textile products not covered under the RoSCTL are eligible to avail the benefits under RoDTEP along with other products," the statement said.

The scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) provides for refund of taxes, duties and levies that are incurred by exporters in the process of manufacturing and distribution of goods and are not being reimbursed under any other mechanism at the Centre, state or local level.

The scheme is based on an internationally acceptable principle that taxes and duties should not be exported, to enable a level-playing field in the international market for exports.

"Hence, not only indirect taxes on inputs are to be rebated or reimbursed but also other un-refunded state and central taxes and levies are to be rebated," it said.