RoSCTL Scheme: Benefits, Eligibility & How to Claim?

RoSCTL, which stands for Rebate of State and Central Taxes and Levies, is a government scheme that refunds embedded state and central taxes on the export of apparel, garments, and made-ups falling under Chapters 61, 62, and 63 of the ITC-HS codes. It replaced the earlier MEIS scheme for the textile sector, helping Indian exporters stay cost-competitive in global markets.

The scheme exists to address a specific gap. Many apparel and textile exporters lose margins to embedded indirect taxes that GST does not refund, such as VAT on fuel, electricity duty, mandi tax, central excise duty on raw materials, and embedded SGST. RoSCTL refunds these hidden levies, which for businesses running on thin margins can be the difference between profit and loss.

The rebate is delivered through transferable duty credit e-scrips rather than cash. These scrips are calculated on the FOB value of your exports at a notified rate, and can be used to pay Basic Customs Duty on imports or sold to other businesses for liquidity. For Chapters 61 to 63, RoSCTL operates instead of RoDTEP on the same exports, while other products continue under RoDTEP. The scheme is currently notified for these textile chapters up to 31 March 2026, with eligibility unchanged.

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.

The key benefit of RoSCTL is that it provides duty credit scrips, digital certificates issued by the DGFT website that function like tradeable vouchers for paying customs duties. These scrips 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.

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:

1. 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
2. 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
3. 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
4. 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

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 are notified by the government of India through DGFT and CBIC circulars, and they vary by HS code and product. The Ministry of Textiles notifies these rates across four schedules. Schedules 1 and 2 cover the State and Central taxes and levies for apparel and made-ups, while Schedules 3 and 4 apply to apparel exports where the fabric has been imported duty-free under the Special Advance Authorisation Scheme.

A few things to understand about how the rates work:

Combined rate: The total rebate on any product is the sum of its State levy rate plus its Central levy rate. Rates generally range from around 1.7% to 8.2% of the FOB (Free on Board) value, calculated using the formula: RoSCTL Amount = FOB Value × Applicable Rate. Apparel typically sits in the lower-to-mid range, while made-ups like bed linen and blankets attract the highest rebates.

What the levies cover: State levies include VAT on fuel used in transportation, farm sector taxes, stamp duty on export documents, and embedded SGST on inputs like pesticides and fertilisers. Central levies include central excise duty on transportation fuel and embedded CGST on inputs used in natural cotton production.

Here are the combined RoSCTL rates for some of the most common Indian apparel and made-up exports, shown for cotton products:

Note that man-made fibre and silk versions of the same products attract lower rates, usually around 3.8% combined, since synthetic inputs carry less embedded tax than cotton. Each rate is also subject to a per-unit cap in rupees, so the actual credit is the percentage of FOB value or the capped amount per piece, whichever is lower.

Understanding the differences between these export incentive schemes helps Indian textile exporters make the right choice and to achieve maximum benefits.

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.

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

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.

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