The Ministry of Textiles has extended the Remission of State and Central Taxes and Levies (RoSCTL) scheme for apparel, garments and made-ups exports by three months, from October 1 to December 31, 2026. The RoSCTL scheme extension keeps current rates and existing guidelines unchanged, so exporters can keep claiming remission on embedded taxes without any change in paperwork.
The ministry announced the extension on September 30, 2026. RoSCTL has operated since March 7, 2019 and follows a zero-rating principle for exports: it remits eligible State and Central taxes and levies embedded in exported goods that no other mechanism refunds. In 2025-26 the scheme supported more than 15,400 exporters across over 444 districts, and most of them were micro, small and medium enterprises (MSMEs).
What Does the RoSCTL Scheme Extension Change for Exporters?
Nothing changes in rates or procedure. The ministry has kept the existing rates and guidelines in place for the extra three months, which gives exporters continuity while shipments for the winter and spring seasons are being booked and priced. Exporters who price orders weeks or months ahead can now quote with the same remission assumptions through December 31, 2026.
The extension follows industry expectations. Industrial Front reported on September 24, 2026 that the government was weighing an extension of the scheme. Today’s notice confirms that the scheme will continue, and it removes the risk of a gap on October 1.
Why Does RoSCTL Matter to India’s Apparel and Made-Ups Sector?
Apparel and made-ups are labour-intensive categories, and exporters compete on thin margins against other manufacturing countries. Taxes and levies that stay embedded in the cost of a garment, such as those on inputs and power, make Indian products costlier abroad. RoSCTL removes that embedded burden so the exported product carries domestic taxes only when sold at home.
The reach of the scheme explains why the sector watches it closely. With more than 15,400 exporters across over 444 districts benefiting in 2025-26, the scheme supports dispersed manufacturing clusters rather than a handful of large hubs. According to the Ministry of Textiles, that wide geographical reach strengthens India’s position in global textile trade and helps small and medium exporters compete internationally.
How Will This Affect MSME Exporters and Buyers?
MSMEs form the majority of the beneficiaries, and they have the least room to absorb a sudden loss of remission. A stable rate card lets them finalise quotations, plan working capital and negotiate with overseas buyers without building in a buffer for policy risk. Buyers also gain, because Indian suppliers can hold their quoted prices through the end of the year.
The extension is short, however. Three months gives certainty through the calendar year but not beyond it, so exporters will still look for a longer-term decision on the scheme.
Market Reaction and Industry Response
The announcement came from the Ministry of Textiles and no market reaction has been reported so far. Exporter bodies have repeatedly asked for continuity of tax remission schemes, and a short extension at unchanged rates is the outcome that avoids disruption. We will update this report if trade bodies issue formal statements.
What Happens Next?
The scheme now runs through December 31, 2026. Exporters should watch for a further notification from the Ministry of Textiles in December that either extends the scheme again, revises rates or replaces it. Until then, exporters should continue to claim remission under the existing guidelines for shipments made from October 1.
Frequently Asked Questions
What is the RoSCTL scheme?
RoSCTL stands for Remission of State and Central Taxes and Levies. It refunds eligible embedded State and Central taxes and levies on exports of apparel, garments and made-ups that are not refunded through other mechanisms. The scheme has run since March 7, 2019.
Until when is the RoSCTL scheme extended?
The Ministry of Textiles extended the scheme from October 1 to December 31, 2026, a three-month extension. Rates and guidelines remain the same as before.
Who benefits from the RoSCTL scheme?
Exporters of apparel, garments and made-ups benefit. During 2025-26 the scheme supported more than 15,400 exporters in over 444 districts, and the majority were MSMEs.
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