The Confederation of Indian Textile Industry (CITI) has urged the government to extend the Rebate of State and Central Taxes and Levies (RoSCTL) scheme beyond its current expiry date of March 31, 2026.
In a press release on February 9, 2026, CITI sought a minimum 5-year extension of the scheme to provide stability to apparel and made-ups exporters and protect employment in the sector.
CITI Chairman Ashwin Chandran said, “CITI believes that a predictable policy framework is critical for enabling companies in the apparel and made-ups sectors to plan investments, remain competitive in global markets, and prevent job losses, besides reinforcing India’s position as a reliable global sourcing destination at a time when the textile and apparel sector continues to be buffeted by global headwinds.”
Request for Rate Revision and Wider Coverage
CITI has also asked for a revision of RoSCTL rates to account for sustained cost inflation and certain embedded taxes that remain unreimbursed, including stamp duties, levies on renewable energy equipment, and service-linked charges.
In addition, the industry body has called for the removal or revision of rebate caps, citing currency depreciation as a factor limiting real benefits. It has also sought an expansion of the scheme’s coverage to Special Economic Zones (SEZs), Export Oriented Units (EOUs), advance authorisation holders, and e-commerce exports.
To improve fund realisation, particularly for MSME exporters, CITI has proposed the introduction of Direct Benefit Transfer (DBT) or wider use of scrips.
Role of the Scheme
The RoSCTL scheme aims to offset State and Central taxes and levies on exports of apparel, garments, and made-ups, in addition to the Duty Drawback scheme. CITI stressed that RoSCTL is a tax-neutrality mechanism rather than a subsidy, aligned with the global principle of zero-rating exports.
Industry Concerns
According to industry estimates, export volumes could have fallen by 25–50 per cent during recent global downturns without the RoSCTL scheme. Over the past five years, while input costs rose by 3–4 per cent annually, export prices remained largely unchanged, with the scheme helping bridge the cost gap.
CITI said the scheme has helped safeguard over eight lakh jobs during this period, making it a significant employment-protection measure.
