Circular No.ES/240/2019-20 20th February, 2020
To: Members of the Council
Sub: Schemes for Rebate of State and Central Taxes and Levies (RoSCTL) & Additional Ad-hoc Incentive for export of garments and made-ups
Your kind attention is invited to CBIC’s Circular No. 13/2020- Customs dated 19th February, 2020 on the above subject.
Brief on Rebate of State Levies (RoSL) – (Old Scheme)
Notified to reduce the incidence of State VAT & other State taxes on export of garments and made-ups
Chapters 61, 62 and 63 of AIR schedule of duty drawback
Refer CBIC’s Circular Nos. 43/2016-Customs dated 31st August, 2016 and 8/2017-Customs dated 20th March, 2017.
Brief on Rebate of State and Central Taxes and Levies (RoSCTL) – (New Scheme)
Notified the new scheme, since certain State & Central levies still remained unrebated in the export of garments & made-ups
Refer Ministry of Textiles Notification No. 14/26/2016-IT (Vol II) dated 7th March, 2019.
The rates of rebate under RoSCTL scheme were notified vide Notification No. 14/26/2016-IT (Vol.11) dated 8th March, 2019.
Thereafter, Ministry of Textiles issued Notification No 14/26/2016-IT(Vol.11)(Part II) dated 2nd May, 2019 to elaborate on the nature of rebate, mechanism of issue of scrips, over-claim/ claim based on mis-declaration and procedure for recovery under RoSCTL scheme.
DGFT vide Public Notice No. 58/2015-20 dated 29th January, 2020 has informed about the withdrawal of MEIS benefits for items falling under Chapters 61, 62 and 63 w.e.f. 7th March, 2019.
Paragraphs 4.95 and 4.96 under HBP, 2015–20 were revised by DGFT to provide for procedure to apply for incentive, recovery mechanism etc. under RoSCTL and Additional Ad-hoc Incentive schemes.
Upon withdrawal of MEIS benefit for garments and made-ups, with a view to compensate exporters affected under RoSCTL scheme when compared with the benefit under erstwhile RoSL + MEIS, Ministry of Textiles vide Notification No. 14/26/2016-IT/Vol. II dated 14th January, 2020 had notified the scheme for Additional Ad-hoc Incentive of upto 1% of FoB value to be given to such exports of garments & made-ups.
Please make a note of the following details–
RoSCTL Scheme shall remain in force up to 31st March, 2020.
Under the RoSCTL & Additional Ad-hoc Incentive schemes, the rebate will be granted by DGFT in the form of electronic duty credit scrips similar to the scrips issued under MEIS.
The benefit under the two schemes will be given in single electronic scrip to be utilised for payment of duties of Customs and Central Excise.
The scrips issued under the schemes will be freely transferable. The procedure regarding use of electronic scrips is given in Board’s Circular No. 11/2019-Customs dated 9th April, 2019.
The benefits of RoSCTL scheme shall be available for export of garments and made-ups with Let Export Order (LEO) dates from 7th March, 2019 to 31st March, 2020 while benefits of Additional Ad-hoc Incentive scheme shall be available for exports with LEO dates from 7th March, 2019 to 31st December, 2019.
The use of scrips for payment of specified duties of Customs under the RoSCTL & Additional Ad-hoc Incentive schemes has been notified vide CBIC’s Notification No. 13/2020–Customs dated 14th February, 2020. Similarly, Notification No. 1/2020-Central Excise dated 14th February, 2020 has been issued which provides for use of scrips for payment of duties of Central Excise for clearance of goods
Members may kindly make a note of the above details.