RoSCTL Scheme: Benefits, Eligibility & How to Claim It
Many apparel and textile exporters still lose profit margins due to embedded state and central taxes that aren't refunded through GST.
RoSCTL (Rebate of State and Central Taxes and Levies) replaced the earlier MEIS scheme for the textile sector, helping Indian exporters stay cost-competitive by refunding these hidden taxes.
The India scheme covers state and central levies not addressed under GST, providing relief that can be the difference between profit and loss for businesses with thin margins. While the application process requires proper documentation, the margin improvement makes it worthwhile.
This guide covers the RoSCTL scheme benefits, its eligibility, and how to claim it.
Who Is Eligible for the RoSCTL Scheme (2025 Guidelines)
Many apparel and textile exporters still lose out on margins due to embedded state and central taxes that aren't refunded through GST. RoSCTL replaced the earlier MEIS for the textile and garment sector, helping the Indian export sector stay cost-competitive in global markets.
The scheme is only available to exporters of Apparel (Chapter 61 & 62 of ITC-HS codes) and Made-ups (Chapter 63).
To be eligible, you must hold:
- A valid IEC (Import Export Code)
- Ship products from eligible chapters under Free Shipping Bills with RoSCTL declaration
- Be registered on the DGFT portal and ICEGATE.
You're likely covered if you're exporting t-shirts, bed linen, scarves, or other fabric-based goods. The scheme refunds embedded indirect taxes like electricity duty, VAT on fuel, and central excise duty on raw materials that GST doesn't address.
Key Benefits of RoSCTL
RoSCTL provides duty credit scrips - digital certificates issued by DGFT website that function like tradeable vouchers for paying customs duties. These scripts can:
- Be used to pay customs duties on imports - these transferable e-scrips are maintained in an electronic credit ledger (your digital wallet on ICEGATE) and can be used for paying Basic Customs Duty on the import of goods
- Be sold or transferred in the open market for cash - small enterprises can use duty credit scrips as either money-generating assets, or exporters can sell these to generate funds to create new opportunities
- Improve cash flow and export margin recovery - instead of waiting for long-term reimbursements, RoSCTL provides a rebate through transferable e-scrips, which can be used to pay customs duty or sold to other businesses for liquidity
- Work alongside RoDTEP, but not on the same product, for exports of apparel and made-ups, merchandise exports, RoDTEP is not available. If such products are covered under the RoCSTL, you can only claim one per item
For many MSME exporters, these scrips can add up to 3 - 6% of the FOB value, significantly boosting net margins by refunding embedded state and central taxes.
How the RoSCTL Scheme Works
The RoSCTL process is straightforward and entirely digital, flowing seamlessly from export declaration to credit availability. Understanding this workflow helps exporters maximise their benefits efficiently.
Here's the simplified flow:
- You export an eligible product under a free shipping bill (export document filed without duty drawback claims) - submit a shipping bill through ICEGATE and ensure HS codes (61, 62, 63) are correct
- You declare RoSCTL claim in the shipping bill at the time of filing - to avail the scheme exporter shall make a claim for RoSCTL in the shipping bill by making a declaration using specific scheme codes at the item level
- Once EGM (Export General Manifest - cargo departure confirmation) is filed and customs processes your claim, RoSCTL credit scrips are generated and made available in your ICEGATE account
- Log in to your ICEGATE account and check the E-Scrip Module where your duty credits appear. You can then convert these into transferable scrips to pay import duties or sell to other businesses. Scrips typically appear within 2-4 weeks after customs clearance
How to Claim RoSCTL: Step-by-Step Guide
Here are the steps to successfully claim RoSCTL:
Step 1: Ensure IEC, GST, and ICEGATE registration. You need a valid IEC (Import Export Code) and GSTIN for GST compliance, and you must be registered on ICEGATE with at least one GSTIN attached to access export incentive schemes like RoSCTL.
Step 2: File export under chapters 61–63 with the correct RoSCTL declaration. Submit the shipping bill through ICEGATE, ensuring the HS codes (61, 62, 63) are correct. Declare RoSCTL in the shipping bill using specific scheme codes at the item level.
Step 3: Track RoSCTL scrip issuance in ICEGATE (under Rebate Mechanism). Once the EGM is filed and processed, a scroll with all individual Shipping Bills for the admissible amount will be generated and made available in your ICEGATE account under the E-Scrip Module.
Step 4: Download and use scrips via the customs portal or trade. The duty credit amount will be available within the ledger created for the IEC holder in their ICEGATE login to claim and convert into duty credit scrip, which can be used for paying Basic Customs Duty or transferred to other entities.
Step 5: Maintain a record for GST, refund, and income tax purposes. Exporters must maintain records of shipping bills and all export-related documents for three years from the date the scrip was issued for post-issue scrutiny and recovery purposes, and ensure proper GST compliance through GSTR-1 filing.
RoSCTL Rates (Updated)
RoSCTL (an initiative by the government of India) rates are notified via DGFT and CBIC circulars, varying by HS code and product. The Ministry of Textiles notifies rates under the scheme in four schedules. Schedules 1 and 2 specify the Central and State taxes and levies for apparel and made-ups, while Schedules 3 and 4 give the Central and State taxes applicable for apparel export products when fabric has been imported duty-free under the Special Advance Authorisation Scheme.
- Usually range between 1.7% to 6% of the FOB (Free on Board) value - rebate amount is calculated as a percentage of the FOB value of exports, with the percentage varying by different product categories as notified by the Indian government using the formula: RoSCTL Amount = FOB Value × Applicable Rate (%)
- Includes state levies (SL) and central levies (CL) components - state levies include VAT on fuel used in transportation, farm sector taxes, stamp duty on export documents, and embedded SGST paid on inputs like pesticides and fertilizers, while central levies include central excise duty on fuel used in transportation and embedded CGST paid on inputs for natural cotton production
💡Pro tip: Match the HS code in your invoice and shipping bill exactly with the notified RoSCTL code for accurate credit calculation, as benefits are calculated based on declared export FOB value or up to 1.5 times the market price, whichever is less.
RoSCTL vs RoDTEP: Which One to Use?
Understanding the differences between these export incentive schemes helps Indian textile exporters make the right choice and to achieve maximum benefits.
| Feature | RoSCTL | RoDTEP |
| For Products | Apparel, Made-ups only (Chapters 61, 62, 63) | All other goods (8,555 tariff items) |
| Refund Type | Scrip (duty credit) - transferable and sellable | Electronic credit ledger - non-transferable |
| Can Claim Both? | Not on the same shipping bill- textile goods under chapter 61, 62 & 63 are not eligible for RoDTEP | Must choose one per product |
| Sectors Covered | Textile-specific scheme for garments and made-ups | Covers all sectors except textiles, steel, pharmaceuticals, and chemicals |
| Implementation | Continued beyond 2020 for textile chapters till 2026 | Replaced MEIS from January 2021 for most products |
If you're exporting both garments and packaging (e.g., cotton bags), split your RoSCTL and RoDTEP claims accordingly, use RoSCTL for textile items under eligible chapters and RoDTEP for other products like packaging materials that fall outside the textile classification.
Common Mistakes to Avoid
Even small errors can lead to significant delays or loss of benefits. Here are the most frequent mistakes exporters make when claiming RoSCTL:
Filing under wrong HS codes or chapters - Ensure your products are classified under the correct chapters 61, 62, or 63 of ITC-HS codes, as RoSCTL is only available for apparel and made-ups under these specific classifications. Hence, make sure to input accurate information
Forgetting to tick the RoSCTL declaration in shipping bills - You must make a specific declaration in the shipping bill using appropriate scheme codes at the item level, as the absence of proper scheme codes means the RoSCTL benefit would not be available
Not checking ICEGATE regularly for issued scrips - RoSCTL scrips are typically issued within 2-4 weeks after customs clearance, and you need to actively monitor your ICEGATE account under the E-Scrip Module to claim and convert credits into duty credit scrips
Assuming RoSCTL auto-applies, you must declare it during export filing. The scheme requires active declaration by the exporter in the shipping bill at the time of filing, as benefits are not automatically processed without proper claim submission and scheme code selection
💡Pro tip: Double-check your HS codes against the RoSCTL rate schedules before filing, and always verify that your RoSCTL declaration appears correctly in your shipping bill to avoid processing delays.
Simplify Your Export Payments with Skydo
While RoSCTL helps reduce your export costs through tax rebates, managing international trade and payments efficiently is equally crucial for your export business success.
Skydo streamlines your export payment process with:
- Zero FX margin - Get live exchange rates without hidden markups, saving up to ₹10 lakh annually compared to traditional banks
- Global bank accounts in 5 minutes - Receive payments from the United States, UK, Canada, Australia & 10+ countries without lengthy setup processes
- Instant FIRA generation - Get your Foreign Inward Remittance Advice instantly in your inbox, essential for GST refund claims and RoSCTL documentation
- Real-time payment tracking - Monitor your export payments in less than 24 hours with complete transparency
- Amazon Global Selling integration - Seamlessly withdraw from Amazon marketplaces with tailored pricing for e-commerce sellers
Why this matters for RoSCTL exporters: Since you need to maintain proper documentation of foreign exchange receipts for RoSCTL compliance, Skydo's instant FIRA and real-time tracking ensure you have all necessary records for scheme benefits and GST refunds.
Combine RoSCTL tax savings with Skydo's payment efficiency to maximise your export profitability. Through RoSCTL, you can save on embedded taxes while reducing FX costs and processing delays through smarter payment solutions.
