Introduction to RoSL Scheme
The Government of India had introduced the RoSL Scheme (Rebate of State Levies on Export of Garments) w.e.f. 20th September 2016 to provide the rebate of state levies on made-ups & apparels (for Chapters 61 & 62 ) which were exported from India.
The RoSL Scheme intended to refund state levies such as state VAT/CST in inputs, including packaging, fuel, duty on electricity generation, etc. However, still certain Central taxes and levies were not refunded yet. Hence to increase the competitiveness of this sector Government launched a new Scheme “Rebate of State and Central Taxes and Levies (RoSCTL)” with higher rebate rates on 7th March 2019 which replaced the RoSL scheme.
Therefore shipments taking place before 07th March 2019 were eligible for RoSL Scheme and shipments taking place after 07th March 2019 are eligible for RoSCTL Scheme. RoSL benefits were given to the exporters directly into their bank accounts by the Customs Authority just like Duty Drawback.
[To Know more about the new RoSCTL Scheme, it's eligibility, application procedure & incentive rates, read our article on "RoSCTL Scheme - Complete Guide"]
Why were RoSL benefits stuck?
The benefits under the RoSL scheme to the tune of Rs. 500 Cr was blocked due to a shortage of funds with the Govt. Many exporters who had already quoted their rates and shipped the goods taking into account the RoSL benefits were stuck and facing huge losses. This led to widespread protests from the cash strapped exporters.
[Not sure whether you have received RoSL benefits for all your shipping bills? Check the RoSL sanctioned status here - https://www.icegate.gov.in/DocEnquiry/inputROSLEnquiryAction]
Release of stuck RoSL Refund
Taking into consideration the grievances of exporters & as a relief measure in the COVID-19 outbreak the Department of Revenue (DoR) has asked the DGFT to release Rs 464 Cr against pending claims under the RoSL Scheme. Unlike the earlier refund process, the RoSL benefits will not be transferred into the bank account by the Customs Authority. It will be issued by the DGFT in the form of duty credit scrips instead of cash and these scrips can be used in the payment of basic customs duty and central excise duties.
Now it’s very important to have a clear idea about how exporter needs to apply online to claim their stuck benefits under RoSL and what will be the required documents.
List of Documents required for RoSL Scheme
- Shipping bills
- DGFT DSC
- Valid RCMC copy
Online Application procedure to avail stuck benefits under RoSL Scheme
- All the pending shipping bills will be transmitted from Customs to the DGFT server.
- The applicant needs to visit the DGFT website (https://www.dgft.gov.in/CP/) and file an online application.
- Fill in the required details and attach the relevant documents.
- Unlike the MEIS Scheme linking of e-BRC is not required for applying under RoSL Scheme.
- The online system of DGFT will electronically process the application and the scrip/RoSL license will be issued.
- Make sure to submit the online application to the jurisdictional Regional Office of DGFT.
- After receiving the duty credit scrip it needs to be verified from the customs office and then it can be used in the payment of customs and central excise duties.
Who are we & Why choose us?
Afleo Consultants is India's No. 1 Export Incentive Consultant. We study your entire business process and guide you for all the eligible export benefits in India that your Company can claim. Our only motto is to get maximum export incentives for our clients within the policy framework.
We can help you to claim your pending/stuck RoSL benefits in a speedy & hassle-free manner.
We have a PAN India presence.
We would appreciate your comments and views on the above topic.
Have any doubts? Please fill the form below to get in touch with us.
