Circular No.: ES/355/2020-21 6th November, 2020
To: Members of the Council
Sub: Scheme for Rebate of State Levies (RoSL)
We would like to inform you that CBIC has issued Circular No. 49/2020 dated 3rd November, 2020 regarding the Scheme for Rebate of State Levies (RoSL).
As you are aware, the Government had notified the ROSL Scheme to mitigate the incidence of State VAT and other State Taxes on export of garments and made-ups (falling under Chapters 61, 62 and 63 of AIR Schedule of Duty Drawback). In this regard, the Ministry of Textiles (MOT)’s various notifications mentioned in Board’s Circular Nos. 43/2016- Customs dated 31st August, 2016 and No. 8/2017- Customs dated 20th March, 2017 may be seen.
The erstwhile ROSL Scheme was in operation till 6th March, 2019 and has been replaced by the Scheme of Rebate of State and Central Taxes and Levies (RoSCTL). In this regard, Board’s Circular No. 10/2019-Customs dated 12th March, 2019 may be referred.
RoSL rebate was earlier being released in the exporter's bank account based on the budgetary allocation of MOT. Subsequently, as per MOT’s Notification dated 7th March, 2019 as amended vide Notification dated 9th June, 2020 for the pending ROSL claims which could not be then released due to budget limitations, it has been decided that the remaining ROSL rebate is to be granted by DGFT in the form of electronic duty credit scrips, which can be utilized for payment of duties of Customs and Central Excise. This will be on the lines of scrips issued under the ROSCTL scheme. These ROSL scrips will be freely transferable.
In this connection, please make a note of the following details-
DGFT had issued Notification No.37/2015-20 dated 6th October, 2020 informing about the addition of sub-para (d) in para 4.01 (d) of FTP 2015-20 related to the issuance of ROSL scrips as notified by MOTs.
Vide Public Notice No. 25/2015-20 dated 13th October, 2020, DGFT has added Para 4.97 relating to Procedure to apply for scrips under RoSL and Para 4.98 relating to Recovery Mechanism in HBP 2015-20. This Notification and Public Notice may be perused for further details of the respective schemes.
CBIC vide Notification No. 38/2020- Customs dated 21st October, 2020 notified the use of scrips for payment of specified duties of Customs under the ROSL scheme.
CBIC’s Notification No. 7/2020- Central Excise dated 21st October, 2020 notified the use of scrips for payment of duties of Central Excise for clearance of goods specified in the Fourth Schedule of the Central Excise Act, 1944.
The Regional Authority of DGFT would be responsible for any recovery that may be required to be made regarding benefits issued by DGFT through scrip mechanism under ROSL.
All instances of misuse that may have a bearing on ROSL rebate should be intimated to Shri Praveen Kumar, Deputy DGFT, O/o Directorate General of Foreign Trade, Udyog Bhawan, Maulana Azad Road, New Delhi-11 (email@example.com) (Tel.: 011- 23061562) who has been nominated by DGFT as the nodal authority to look into the matter.
Members may kindly make a note of the above.