The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the continuation of the Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) for the export of Apparel/Garments and Made-ups until 31st March 2026.
Significance of Continuation
The approval for the proposed duration of two (2) years aims to provide a stable policy regime, crucial for long-term trade planning, especially in the textiles sector where orders are placed well in advance for extended delivery periods.
Objectives of RoSCTL
The RoSCTL ensures predictability and stability in the policy regime, alleviates the burden of taxes and levies, and establishes a level playing field, emphasizing that “goods are exported and not domestic taxes.” The scheme supports the principle of zero-rated export, making apparel/garments and Made-ups products cost-competitive in the international market.
Historical Perspective
The Union Cabinet had initially approved the RoSCTL scheme until 31st March 2020. Subsequently, an extension was granted until 31st March 2024. The latest extension until 31st March 2026 aims to enhance the export competitiveness of garments and Made-ups sectors.
Eligibility and Coverage
While apparel/garments and Made-ups products benefit directly from RoSCTL, other textile products (excluding Chapter 61, 62, and 63) not covered under the scheme can avail benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) along with other products.
Multiple Choice Questions (MCQs):
- Who chairs the Union Cabinet?
- A) President of India
- B) Prime Minister
- C) Home Minister
- D) Finance Minister
- What is the proposed duration of the continuation of the RoSCTL scheme?
- A) 1 year
- B) 3 years
- C) 5 years
- D) 2 years
- What is the main objective of the RoSCTL scheme?
- A) Promoting domestic taxes
- B) Exporting goods and domestic taxes
- C) Importing textiles
- D) None of the above
- Which sector is particularly emphasized for long-term trade planning in the context of the RoSCTL scheme?
- A) Agriculture
- B) Pharmaceuticals
- C) Textiles
- D) Information Technology
- What does RoSCTL stand for?
- A) Reduction of State and Central Taxes and Levies
- B) Rebate of State and Central Taxes and Levies
- C) Removal of State and Central Taxes and Levies
- D) Reimbursement of State and Central Taxes and Levies