The Government of India has announced the continuation of key export incentive schemes for the textile sector, reinforcing its commitment to enhancing global competitiveness and supporting exporters, particularly in labour-intensive segments.
RoSCTL Scheme Extended Till September 30, 2026
The Ministry of Textiles has extended the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for apparel and made-ups exports until September 30, 2026, or until further review under the 16th Finance Commission, whichever is earlier.
The extension has been granted without any changes to the existing framework, ensuring continuity for exporters. Initially introduced on March 7, 2019, the scheme aims to reimburse embedded state and central taxes that are not otherwise refunded through existing mechanisms.
RoSCTL operates on the principle of zero-rating exports, helping exporters neutralise hidden tax costs and maintain competitive pricing in international markets. The scheme has been particularly beneficial for MSMEs, which form a substantial portion of India’s apparel and made-ups export ecosystem.
RoDTEP Scheme Also Continued
In parallel, the government has extended the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme from April 1, 2026, to September 30, 2026.
RoDTEP covers textile products that are not included under RoSCTL, specifically those outside Chapters 61, 62, and 63 of the ITC (HS) classification. This ensures that a broader range of textile exports continues to receive tax remission benefits.
Comprehensive Support Across the Value Chain
Together, RoSCTL and RoDTEP create a complementary incentive structure for the textile industry. While RoSCTL primarily supports garments and made-ups, RoDTEP extends benefits to other textile categories, ensuring coverage across the entire value chain.
Boost to Export Competitiveness
The continuation of both schemes is expected to enhance India’s export competitiveness by reducing the overall tax burden on exporters. By improving cost efficiency, these measures enable Indian textile companies to compete more effectively in global markets.
For MSME exporters, in particular, such incentives play a crucial role in sustaining margins and scaling operations. Additionally, the extension provides policy stability, allowing businesses to plan production and export strategies with greater clarity and confidence.
Summary
The government has extended the RoSCTL scheme for apparel and made-ups exports until September 30, 2026, while continuing the RoDTEP scheme for other textile categories over the same period. Together, these initiatives provide comprehensive tax relief across the textile value chain, supporting export competitiveness and offering stability, especially for MSME exporters.
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