RoSCTL Scheme Explained: How to Benefit, Eligibility, and Application Process

The Rebate of State and Central Taxes and Levies (RoSCTL) scheme represents a strategic government program that aims to boost Indian exporter competitiveness through tax and levy rebates for global markets. The following post details the RoSCTL scheme through a comprehensive breakdown of its advantages, together with the requirement qualifications and application procedure. The article explains how MYGST Refund assists users in obtaining efficient benefits from this scheme.

What is the RoSCTL Scheme?

The Ministry of Textiles from the Government of India established the RoSCTL Scheme on March 7th, 2019. The RoSCTL Scheme introduced in 2019 replaced the older "Rebate of State Levies (RoSL) Scheme" because it aimed to respond to WTO and other international needs about Indian export incentives.

The RoSCTL scheme functions as the primary export incentive for garments and made-ups provided by the Ministry of Textiles through the Government of India. The scheme operates to return state and central taxes on exported garments and made-ups to exporters, which enhances the international competitiveness of the textile sector. Exporters obtain transferable duty credit scrips through this program that enable them to cover customs duties costs.

Benefits of the RoSCTL Scheme

Through its operation, the RoSCTL scheme delivers various important benefits to exporting companies:

• Global exporters benefit from cost reduction under the scheme because it provides state and central tax reimbursement to minimize their operational costs, which enables them to create more competitive prices in foreign markets.
• The cost reduction benefits from rebates allow Indian exporters to match prices with international manufacturers during export activities.
• Financial support through this scheme enables exporters to direct funds toward business growth by investing funds in their operations to maintain manufacturing, implement new technological systems, and introduce different product lines.
• Small enterprises can use duty credit scrips as either money-generating assets or as payment instruments for required import duties, thus enhancing their ability to handle cash flow.
• Through bulk processing capabilities, the scheme enables applications with up to 50 shipping bills, which accelerates the processing speed and delivers more timely rebates.

Pro Tip: Use our GSTIN Validator to quickly verify GST numbers and ensure accuracy in your business transactions!

Eligibility for the RoSCTL Scheme

To avail the benefits of the RoSCTL scheme, businesses must meet the following criteria:

• The opportunity is open to direct exporters, whether they function as merchants or manufacturer-exporters who conduct exports of garments and made-up articles from India directly.
• The export application becomes void when businesses appear on the DGFT’s ‘Denied Entity List.
• Exporters must not utilize benefits from both the RoDTEP scheme and any other export incentive since it violates the scheme requirements.
• Application for the scheme needs to occur within one year from the date of the shipping bill because late filings result in claim rejection.

• The scheme provides benefits for shipments exported as cargo and couriered via all modes of transport.

Documents Required for RoSCTL Scheme

To apply for the RoSCTL scheme, exporters must furnish the following documents:

• Importer Exporter Code (IEC)
• Copies of shipping bills
• Digital signature certificate
• DGFT registration
• Valid RCMC (Registration Cum Membership Certificate)

Additional documents may be required based on the product and business type.

How to Apply for the RoSCTL Scheme

The application procedure for the RoSCTL scheme requires petitioners to follow these specific steps.

Fill out the ANF 4R form:

To initiate RoSCTL registration, users need to finish filling out the ANF 4R form through the DGFT website.

Select Regional Authority and Port:

The first step requires you to select your relevant RoSCTL scrip-related Regional Authority (RA) and port of registration through RoSCTL.

File separate applications:

Your company needs to submit two distinct applications to the authorities for shipments moved via EDI as well as non-EDI ports. A single application under the RoSCTL scheme allows you to include a maximum of fifty shipping bills.

Check Scrip Validity:

The validity period of RoSCTL scrips extends to twenty-four months. The status check along with scrip utilization occurs at EDI ports, while obtaining TRA stands for Telegraphic Release Advise at non-EDI ports.

Note Scheme Code:

The scheme code must be accurately recorded in shipping bills to allow RoSCTL and other scheme benefits to be obtained (such as duty drawback, special advance authorization, and EPCG).

Read More: What is IEC Import Export Code ? Definition and Benefits  

Risks and Compliance under the RoSCTL Scheme

Exporters need to handle four main risks when they utilize the RoSCTL scheme benefits.

Incorrect Documentation:

Insufficient documentation quality prevents rebate claim approval and delays the payment process.

Proof of Sale Proceeds:

The records demonstrating receipt of payment in foreign currency are mandatory for exporters as part of their qualification for rebate benefits.

Electronic Verification:

The authorities conduct digital checks on both applications along with accompanying documents. All export-related records need to be both precise and recent.

Repayment of Excess Claims:

The exporter must return all claims exceeding the preferred amount to authorities along with a 15% annual interest payment.

Penalties for Non-Compliance:

Authorities impose penalties, such as legal actions based on the Foreign Trade (Development and Regulation) Act, on entities that fail to comply with RoSCTL regulations.

How MYGST Refund Can Help

MYGST Refund specialises in optimising the process of obtaining GST refund as well as export incentives, which include the RoSCTL scheme. Our team of expert professionals understands all aspects of export incentives and refund procedures to provide compliant and maximised eligible benefits processing.

Our Services:

We assist clients throughout the RoSCTL Scheme registration by checking all necessary documentation points and following all requirements.

The team verifies your qualification for participating in the RoSCTL scheme while confirming you satisfy every required condition.

Our team conducts errorless filing of applications, which prevents delays from happening.

Our organization implements continuous follow-up procedures to ensure that authorities handle your claims efficiently.

We maintain a process to prepare responses for all official queries, thereby facilitating the smooth processing of applications.

Why Choose MYGST Refund?

Transparency and open communication form our fundamental approach to client service as we provide continuous updates throughout the process.

You will receive the fastest claim processing from us, which allows you to receive maximum refunds more quickly.

The payment system at MYGST Refund operates on a risk-free basis because we do not charge until you achieve complete success with your refund application.

Pro Tip: Use our GST Refund Calculator to easily calculate your refund and simplify the GST process. Whether you want to know your refund amount or check its status, our tool makes it simple to know your GST refund quickly and accurately.

Conclusion

The RoSCTL scheme remains a vital program that strengthens the international market competitiveness of export businesses from India. Companies that understand RoSCTL requirements and procedures alongside its benefits can use the scheme to decrease spending and build their business strength. MYGST Refund provides expert help through which users can easily access the RoSCTL scheme to reach their maximum eligible benefits.

Learn how MYGST Refund helps claim RoSCTL scheme benefits together with other export incentives at their website.

Frequently Asked Questions

Who is eligible for RoSCTL scheme?
Exporters of garments/made-ups manufactured in India, excluding those on the Denied Entity List or claiming RoDTEP benefits. Must directly export goods.

What is the difference between RoDTEP and RoSCTL?
RoSCTL is textile-specific, rebates state/central taxes, and offers transferable duty credit scrips. RoDTEP covers all sectors, rebates excise/VAT, and benefits are non-transferable.

What are the benefits of RoSCTL?
The RoSCTL scheme reduces costs, enhances competitiveness, provides transferable duty credit scrips for liquidity, and simplifies bulk processing.

What is RoSCTL scheme full form?
Rebate of State and Central Taxes and Levies.