The Rebate of State and Central Taxes and Levies
The cabinet of India approved the RoSCTL Scheme to rebate all state and central taxes for garments and made- ups by replacing the previous scheme Rebate of State Levies, which provides only rebates of state taxes. The RoSCTL Scheme came into effect from 07/03/2019.As we know, the USA has filed a complaint against India at the World Trade Organization (WTO). The complaint is that the Indian government gives undue benefits to Indian Exporter under export subsidies like the MEIS scheme, and it is against the WTO rules. Therefore, the Rebate of State and Central Taxes and Levies (RoSCTL) Scheme is a new scheme introduced by the Ministry of Commerce. Currently, RoSCTL scheme is only valid for garments and made-ups (i.e., Chapter 61, 62 & 63). Further, this scheme would be extended to all sectors.
RoSCTL Scheme Rates-
As per Notification No. 14/26/2016-IT (Vol.II) dated 07.03.2019, the RoSCTL rates have been notified as schedule 1, 2, 3 & 4 as follows:-
Schedule 1 & 2 - The rates of state & central excise Levies for apparels and made-ups.
Schedule 3 & 4 - The State & central excise Levies rates for apparels export when the fabric is imported duty-free under a special Advance authorization scheme.
Documents required to apply for RoSCTL Scheme-
* Shipping Bill Copy
* Valid RCMC (Registration Cum Membership Certificate)
While applying online application, the Applicant has to make separate online applications for:
* S.B’s having Let export date between 7th March 2019 and 31st December 2019
* S.B’s having Let export date after 1st January 2020 Till 31st March 2020
As per new Public Notice No. 58/ 2015-2020 DT. 29.01.2020, please Note the Last Date of filing of an application for Duty Scrips under RoSCTL scheme will be..
* For shipping bills with Let export date between 7th March 2019 and 31st December 2019, the last date of filling online application is 30.06.2020.
* For shipping bills with Let export date from 1st January 2020 till 31st March 2020, the last date for filing an online application will be within one year from the date of Let Export Date.
Procedure to Apply for RoSCTL Scheme-
The latest notification released by the government states the procedure that must be followed in order to be eligible for a RoSCTL license. The steps to apply for the RoSCTL scheme are–
* Visit the official website of DGFT. Fill out the application form to apply for RoSCTL online , taking the help of the revised ANR-4R form
* You must also attach the details of all your relevant shipping bills. It must be noted that a maximum of 50 shilling bills are allowed to be linked with a single application form.
The cases when the exporter needs to fill separate online RSCTL forms are–
* The exports that took place between 7th March 2019 and 31st March 2019.
* The exports whose let exports date was on or after 1st January 2019.
* In the case of the split scrips facility, the provisions of para 3.09 of HBP are applicable.
* The regional jurisdiction authority must be chosen with regards to para 3.06(b) of HBP. The government has removed the restriction of maintaining the same jurisdiction regional authority for all the applications in a single financial year.
* Now select the port of registration of your RoSCTL scrips. The port is different for the shipments that happen through electronic data interchange (EDI) and the non-electronic data (non-EDI) interchange ports.
* The shipments from EDI ports and non-EDI ports must be disclosed in separate RoSCTL application forms.
* In the case of EDI-enabled ports, at the time of choosing the port of registration, the applicant can choose any port from where the export was made.
* In the case of non-EDI enabled ports, there must be a separate registration for all the non-EDI ports.
* Your regional authority will issue the electronic scrips, ie. In online mode, when the final entitlement is approved by the system.
* The registration of duty credit scrips needs to be done at the port that is mentioned in the script. These scrips can be used at any port after the registration for import.
* The validity period of duty credit scrips is two years from the date of issue. You must confirm that it is valid when the debit of duty is made .