About RoSCTL Scheme
RoSCTL Scheme: Rebate of State and Central Taxes and Levies Scheme
India has discontinued the export incentive schemes (like MEIS), which is not in compliance with WTO guidelines. The Government of India Ministry of Finance, Department of Revenue Central Board of Indirect Taxes & Customs Drawback Division has notified a new scheme called Rebate of State and Central Taxes and Levies Scheme on the export of garments and made-ups (RoSCTL Scheme). Under the said plot state and focal charges and imposes which are available at the expense of fares of articles of clothing and made-ups will be refunded. The Scheme will remain in effect till 31st March 2020. The existing Rebate of State Levies (RSL) scheme for garments and made-ups has been discontinued. Currently, this scheme is available for the Textile industry only, however, it would be soon extended to other sectors as well.
What Kind of Rebate?
The RoSCTL Scheme provides a rebate on all embedded State and Central Taxes/levies that are meant for exports of made-up articles & garments. However, this scheme will be extended to other export products in the future. The scheme is in compliance with WTO guidelines.
What are the Benefits of the RoSCTL Scheme to Exporters?
With RoSCTL, the benefit to exporters is given by DGFT in the form of duty credit scrips the same as it was with Merchandise Exports from India Scheme (MEIS). ROSL Scheme (old scheme) is to be processed for shipping bills with Let Export Order (LEO) date up to 6th March 2019 only.
What state & Central Levise & taxes are not refunded under RoSCTL Scheme?
With respect to State Taxes and Levies VAT on transportation fuel, Mandi Tax, Electricity Duty, Captive Power, Stamp Duty on all the Export Documents, SGST which is levied on contributions of creation of cotton (crude) like manures, pesticides, and so on, any sort of buys which are produced using unregistered sellers, inputs which are required for the Transport Sector, Coal which is used in the production of the goods are not considered for Rebate.
Central Taxes and Levies for Central Excise Duty on Transportation Fuel, CGST included on all kinds of paid inputs like pesticides, fertilizers, etc., any kind of purchases which are made from unregistered dealers, inputs which are needed for the Transport Sector, Finally, the CGST and Compensation Cess on Coal which is used for the production of electricity will not be Rebated.
Rates of rebate under RoSCTL
RoSCTL Scheme Rebate Rate is hereby notified as Schedules 1, 2, 3, and 4 The Schedule 1 & 2 are the rates of Central taxes and State and levies respectively, for apparel and made-ups. Calendars 3 and 4 are the paces of State and Central charges and impose separately, pertinent for clothing sends out when the texture (counting interlining) just has been imported obligation-free under Special Advance Authorization Scheme.
Frequently Asked Questions (FAQs)
What is the Duty Credit scrip?
Obligation Credit scrips (Duty Credit Script) are given to exporters as "motivators" by the Government of India. The estimation of the scrips is a level of the FOB estimation of merchandise/administrations traded and are uninhibitedly adaptable. The scrips can be utilized to balance customs obligations while bringing in.
What is RoSCTL?
Rebate of State & Central Taxes and Levies is popularly known as the RoSCTL Scheme. RoSCTL is a type of duty scrip given as a reward by the government to an exporter of goods. The value of the scrips can be 2% to 6% of the FOB value of goods exported. The scrips can be utilized to counterbalance import obligations and are openly adaptable.
How can I Apply for RoSCTL Script?
Applying for RoSCTL is a simple procedure and can be done online on DGFT’s website with the concerned RA in AayatNiryat Form (ANF) 3A using a digital signature. E-BRC and the pertinent delivery bills will be connected with the online application. We will help you in the process of filing a RoSCTL application.
Can I sell RoSCTL scrips?
Absolutely Yes, Scrips are freely transferable as per para 3.02 of FTP.
Is it mandatory to registered Scrips at customs?
Yes, it is mandatory to get the script registered at customs. We will help you to register your scrips at customs.
Can I sell an unregistered Scrip at customs?
Yes. However unregistered scrips attract lesser rates, due to additional process.
What is the GST rate on the RoSCTL scrip?
The government has removed the GST chargeable on the sale of this scrip. The GST chargeable on the sale of scrips is 0%.
What is the validity of RoSCTL scrips under DGFT?
RoSCTL scrips are valid only for 24 months from the date of issuance of the scrips.
My RoSCTL scrip has expired, can it be revalidated?
Revalidation of scrips is not permitted unless validity has expired while in the custody of Customs Authority /RA. Revalidation of scrips is not permitted unless covered under paragraph 2.20(c) of the Handbook of Procedures (HBP) of the Foreign Trade Policy 2020-2025.
Are there any hidden fees that I will have to bear?
There are 0 hidden’ fees’. rplicence.com (R.P Trading Company) is a trusted and transparent platform to buy and sell scrips.
How can I make use of RoSCTL?
RoSCTL scrips are freely transferable and are usable for payment of Customs Duty (BCD), Anti-Dumping Duty (ADDs), and Safeguard Duties. The obligation credit scrips can't be utilized for the installment of IGST (Integrated Goods and Services Tax) and GST remuneration cess in imports, and CGST, SGST, IGST, and GST pay cess for local acquisition.
What is the time limit to apply for RoSCTL scrips?
There is a time limit. Applications must be made inside 3 months from the date of transferring EDI dispatching bills on the DGFT worker, or 3 months from the date of print/arrival of delivery bills (for non-EDI bills) or a year from the Let Export (LEO) date, whichever is later, in regard of shipments for which guarantee is being documented.
Why should I buy Duty credit scrips?
For instance, the face value of scrip is Rs.1000 and it is being sold at a price of say Rs.950. You can now utilize it at customs while importing goods at a 100% face value of Rs.1000 and save Rs.50. [Note: Prices quoted above are for illustration purposes only. Genuine costs offered for the scrips are dynamic and depend on specialized and advertise factors].
How much will I save if I use Duty credit scrips?
Scrips are typically sold at a discount. Say the face value of scrip is Rs.10,000 and it is being sold at a price of Rs.9500, you save Rs.500 if you use that scrip during payment of duty during imports. [Note: Prices quoted above are for illustration purposes only. Genuine costs offered for the scrips are dynamic and depend on specialized and advertise factors].
Can I return, an unutilized value in scrip?
No, you cannot return unutilized/balance value. Be that as it may, you can utilize the equalization incentive to counterbalance customs obligation on different imports, or you can sell the unutilized segment of a scrip.