One of the busiest sectors of the global economy today, the textile and apparel sector contributes significantly to both economic expansion and the creation of jobs. Managing the complexity of taxes and levies can be difficult for companies in this industry. In order to lessen the tax burden on exporters and increase their competitiveness internationally, the Indian government acknowledged this and launched the Rebate of State and Central Taxes and Levies (RoSCTL) program.
Under the direction of Prime Minister Shri Narendra Modi, the Union Cabinet decided to extend the Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) for the export of apparel, garments, and made-up items until March 31, 2026.
The RoSCTL scheme aims to refund the embedded taxes and duties that were previously not reimbursed under any other mechanism. It covers various state and central taxes such as VAT on fuel used in transportation, state excise duty on petrol and diesel, mandi tax, electricity duties, and stamp duty on export documents, among others. By providing this rebate, the government intends to boost the export competitiveness of key sectors like textiles and apparel, which face fierce competition in the global market.
For businesses operating in the textile and apparel sector, the RoSCTL scheme offers several advantages:
At Interlink Capital, we are aware of the complexities of tax laws and the need for conformity for companies, particularly those in the clothing and textile industries. Our all-inclusive services include help in obtaining advantages like the RoSCTL scheme, advice on government programs and incentives, and effective tax planning.
With a team of skilled experts knowledgeable about export laws and tax legislation, we assist companies in providing end-to-end service right from knowing the eligible refund, making the application and getting the RoSCTL benefit to the exporter.
Through the RoSCTL Scheme, exporters can lower their production costs and increase their product's competitiveness in global markets by receiving rebates on embedded taxes and levies. Exporters may see an increase in export volume and profitability as a result.
Exporters must adhere to the rules and regulations outlined by the Directorate General of Foreign Trade (DGFT) and other relevant government agencies. They should maintain proper records of their exports and comply with any audits or inspections conducted by the authorities.
Interlink Capital provides comprehensive assistance to exporters in understanding the RoSCTL Scheme, determining their eligibility, calculating rebate amounts, and completing the necessary documentation for claiming benefits. They also offer ongoing support to ensure compliance with scheme requirements.