Schemes for Rebate of States and Central Taxes and Levies(RoSCTL) and Additional Ad-hoc Incentive for export of garments and made-ups.

To

All Principal Chief Commissioners/ Chief Commissioners of Customs/ Customs(Preventive)/ Customs &Central Tax and 

All Principal Director-General/ Director-General under CBIC

Madam/ Sir,

Subject: Schemes for Rebate of States and Central Taxes and Levies(RoSCTL) and Additional Ad-hoc Incentive for export of garments and made-ups.

As you are aware, the Government had notified the scheme for Rebate of State Levies(RoSL) to mitigate the incidence of State VAT and other State taxes on the export of garments and made-ups( falling under Chapter 61, 62 and 63 of AIR schedule of duty drawback). In this regard, the Board’s Circular No. 43/2016-Customs dated 31.08.2016 and No. 8/2017 dated 20.03.2017 refer.

1.1 As certain States and Central levies remained unrebated in the exports of garments and made-ups, the Ministry of Textiles(MoT) vide Notification No. 14/26/2016-IT (Vol. II) dated 07.03.2019 notified the scheme, namely, Rebate of States and Central Taxes and Levies(RoSCTL) to rebate the incidence of various States as well as Central taxes/ levies suffered on export of garments and made-ups. MoT has also notified the rates of rebate under the RoSCTL scheme vide Notification No. 14/26/2016-IT (Vol. II) dated 08.03.2019. Following the discontinuation of the RoSL scheme and introduction of the RoSCTL scheme w.e.f. 07.03.2019, the Board has issued Circular No. 10/2019-Customs dated 12.03.2019 for the guidance of the field formations and the trade. In continuation of MoT’s aforesaid notification dated 07.03.2019, MoT’s Notification No. 14/26/2016-IT(Vol. II) dated 02.05.2019 elaborated on the nature of rebate, mechanism of issue of scrips, over claim/ claim based on misdeclaration and procedure for recovery under RoSCTL scheme.

1.2 Further, it is to inform that DGFT vide their Public Notice(PN) No. 58/2015-20 dated 29.01.2020 has withdrawn the benefit under Merchandise Export from India Scheme(MEIS) for items falling under Chapter 61,62 and 63 w.e.f. 07.03.2019 i.e., the date of introduction of the RoSCTL scheme.

1.3 Further, upon withdrawal of MEIS benefit for garments and made-ups ( falling under Chapter 61, 62 and 63), with a view to compensate exporters affected under the RoSCTL scheme when compared with the benefit under erstwhile RoSL + MEIS.

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