The Ministry of Textiles has extended the RoSCTL (Remission of State and Central Taxes and Levies) Scheme for three more months, through 31 December 2026. The scheme, which supports exporters of apparel, garments and made-up articles, will continue at existing rates and under current rules from 1 October onwards.
Key facts
- Scheme extended from 1 October to 31 December 2026
- Operational since 7 March 2019
- In 2025–26, benefited 15,400+ exporters
- Exporters spread across 444 districts
- Majority of beneficiaries are MSMEs (micro, small and medium enterprises)
- Extension maintains existing rates and guidelines with no changes
What the RoSCTL Scheme does
The scheme remits eligible embedded State and Central taxes and levies that exporters cannot recover through other refund mechanisms. Under the principle of zero-rating of exports, it aims to ensure that domestic tax burdens do not rest on products sold abroad. This helps Indian apparel and garment makers compete on a level playing field in international markets.
Who benefits and how widely
The 2025–26 figures show the scheme’s reach across India. More than 15,400 exporters across 444 districts received support, with most beneficiaries being small and medium businesses rather than large corporations. This wide distribution reflects India’s apparel manufacturing ecosystem, which is spread across many regions and involves many small producers. The scheme thus strengthens the position of these dispersed, labour-intensive producers in global trade.
Why the extension matters
Extending the scheme for a further three months provides certainty to exporters about continued support. The apparel and made-ups sector faces intense global competition, particularly from lower-cost producers. By maintaining the subsidy mechanism without changes to rates or rules, the government signals steady support for this labour-intensive sector that employs millions across India and generates export revenue.
What this means for you
If you are an apparel exporter or work in a garment business that ships products abroad, the extension means your eligibility for tax remission continues without disruption. You can plan exports and investments with confidence that the scheme will remain in place through the end of 2026. MSMEs in particular, which dominate the beneficiary base, can rely on this cost support when pricing their products for export markets.
If you are studying trade policy or preparing for competitive exams, note that this is an example of how India uses subsidy schemes to boost exports in labour-intensive sectors without directly breaching World Trade Organization rules, since zero-rating is a standard export practice globally.
What happens next
The scheme will run under its current terms until 31 December 2026. No announcement has been made about what happens after that date.