AI Generated Summary
- The government has extended the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for exports of apparel, garments and made-ups till September 30, 2026, or until the competent authority approves the scheme for the 16th Finance Commission cycle, whichever comes earlier.
- The RoSCTL scheme, launched in 2019 by the Ministry of Textiles and administered by the Directorate General of Foreign Trade, aims to make Indian textile products more price-competitive in international markets by neutralising embedded taxes.
- The scheme reimburses embedded non-GST state and central taxes on exported garments and made-ups, with benefits extended in the form of transferable Duty Credit Scrips to enhance competitiveness.
The government has extended the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for exports of apparel, garments and made-ups till September 30, 2026, or until the competent authority approves the scheme for the 16th Finance Commission cycle, whichever comes earlier.
The extension, which took effect from April 1, 2026, provides immediate relief to the labour-intensive textile sector amid global uncertainties and intense competition from countries like Bangladesh and Vietnam. The scheme reimburses embedded non-GST state and central taxes on exported garments and made-ups, with benefits extended in the form of transferable Duty Credit Scrips to enhance competitiveness.
Industry players in Punjab and Haryana — two major textile export hubs — are expected to gain the most from the six-month breather. Punjab’s textile exports stand at around ₹12,421 crore annually, while Haryana’s Panipat, known as the “Textile City of India,” continues to expand as a key centre for home textiles and made-ups.
Exporters welcomed the move, saying it prevents any disruption in shipments and protects thousands of jobs in MSME units. “This extension ensures continuity and gives us time to plan ahead,” said a senior official from the Apparel Export Promotion Council.
The RoSCTL scheme, launched in 2019 by the Ministry of Textiles and administered by the Directorate General of Foreign Trade, aims to make Indian textile products more price-competitive in international markets by neutralising embedded taxes.
Officials indicated that the interim extension would allow time for a longer-term policy decision under the 16th Finance Commission. Industry bodies have been pressing for a stable, predictable incentive regime to support technology upgrades and skill development in the sector.
The announcement comes as textile exporters face pressure from fluctuating global demand and rising input costs. The government hopes the measure will help sustain export momentum in the critical apparel segment.
