About the Scheme

• Under the Rebate of State and Central Taxes and Levies (RoSCTL) scheme, exporters are issued a duty credit scrip for the value of embedded taxes and levies contained in exported products. 
• Exporters get rebate of central and state taxes and levies such as VAT on fuel used in transportation, central excise duty on fuel used in transportation, embedded GST paid on inputs, etc.
• Exporters can use this scrip to pay tax while importing equipment, machinery.

Why in News?

• The Ministry of Textiles has notified the continuation of the RoSCTL scheme for export of garments and made-ups and issued guidelines for its implementation.
• Garment exporters would continue to get a rebate on Central and State taxes on outward shipments till March 31, 2024.
• Continuation of RoSCTL for apparel/garments and made-ups is expected to make these products globally competitive by rebating all embedded taxes/levies which are currently not being rebated under any other mechanism. 
• It will ensure a stable and predictable policy regime and provide a level playing field to Indian textiles exporters. Further, it will promote startups and entrepreneurs to export and ensure creation of lakhs of jobs.

Reference:

1. https://www.thehindu.com/business/govt-extends-export-rebate-for-garments/article35903755.ece