India's Ministry of Textiles has extended the RoSCTL rebate scheme for apparel and made-ups exports by another three months, running from October 1 to December 31, 2026, with rates and current guidelines unchanged. The scheme has been in force since March 7, 2019, and its core purpose is to refund central and state taxes and levies that cannot be reclaimed through other channels at the export stage.

Key Points

  • India's Ministry of Textiles extends the RoSCTL scheme to December 31, 2026, a three-month extension effective from October 1, 2026
  • In 2025-26, the scheme covered more than 15,400 exporters across over 444 districts, with MSMEs making up the majority of beneficiaries
  • The scheme follows the zero-rated export principle, i.e., refunding domestic taxes and levies to prevent them from being added to exported products

RoSCTL stands for the Rebate of State and Central Taxes and Levies scheme, designed around the principle of zero-rated exports. The logic is that exported products should not carry domestic tax burdens; any central taxes, state taxes and cess that cannot be refunded through other mechanisms are rebated under this scheme, preventing tax costs from being passed on to overseas buyers.

In terms of coverage, more than 15,400 exporters benefited in 2025-26, spanning over 444 districts. India's Ministry of Textiles noted that MSMEs form the majority of beneficiaries, and this broad geographic spread reflects the scheme's role in supporting a decentralized manufacturing ecosystem, as well as its bearing on whether small and medium exporters can continue to compete in global markets.

The extension is positioned as a move to maintain policy continuity and predictability. For labor-intensive, higher-value-added export segments such as apparel and made-ups, a stable rebate arrangement helps them maintain quotation competitiveness in an increasingly competitive global trade environment.

Looking at the pace over the past three years, RoSCTL has operated through short-cycle rolling extensions, and this three-month window continues that pattern. For second-hand clothing and textile trading companies sourcing from India or working with Indian apparel and home textile suppliers, whether export-side tax costs remain stable will indirectly show up in suppliers' quotation cycles and willingness to take orders.

Source: Ministry of Textiles extends RoSCTL Scheme till 31 December 2026 · Originally published 2026-09-30