The Rebate of State & Central Taxes and Levies (RoSCTL) Scheme is an export incentive in the form of transferable and sellable duty credit scrips offered on the basis of the FOB value of the export. It replaces the Rebate of State Levies (RoSL) scheme, a monetary incentive scheme under which Customs would deposit the rebate directly into the exporter’s bank account.
The Ministry of Textiles notified the introduction of RoSCTL in March 2019. It was followed by the release of the RoSCTL rate list and a CBIC notification on the scheme.
The introduction of RoSCTL was seen as India’s reaction to the increasing international pressure on export incentives provided by the Indian government. The US, in particular, has been very vocal, urging the discontinuation of export incentive schemes like the Merchandise Exports from India Scheme (MEIS) on the grounds that they flouted the WTO Agreement on Subsidies and Countervailing Measures. Notably, the US also objected to Export Oriented Units (EOU), Electronics Hardware Technology Park (EHTP), Export Promotion Capital Goods (EPCG), Special Economic Zones (SEZ), and Duty-Free Import Authorization (DFIA) schemes at various points in 2019.
