The Rebate of State and Central Taxes and Levies (RoSCTL) is an export incentive scheme introduced by the Government of India, primarily for the textile sector, specifically apparel and made-ups (ITC-HS Chapters 61, 62, and 63). The scheme was launched on March 7, 2019, by the Ministry of Textiles.
Its creation was driven by the need to make Indian exports World Trade Organization (WTO)-compliant, as the previous Merchandise Exports from India Scheme (MEIS) was challenged by the United States for violating the WTO's Agreement on Subsidies and Countervailing Measures. The core problem RoSCTL solves is the non-refund of various embedded State and Central taxes and levies—such as VAT on fuel, electricity duty, and mandi tax—that are not reimbursed through the GST framework or the Duty Drawback mechanism, thereby inflating the cost of exports.
The mechanism works by providing the rebate in the form of transferable duty credit e-scrips, which are calculated as a percentage of the Free on-board (FOB) value of the exported goods. Exporters can use these scrips to pay Basic Customs Duty on imported goods or sell them to other importers for liquidity.
RoSCTL replaced the earlier Rebate of State Levies (RoSL) scheme, which only covered state levies, and also replaced MEIS for the textile sector. The key change was the expansion of the rebate to include both State and Central taxes. For other sectors, the related concept is the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, and an exporter cannot claim benefits under both RoSCTL and RoDTEP for the same product. The scheme has been recently extended by the Ministry of Textiles until September 30, 2026.