Exporters in India often face confusion when choosing between different government incentive schemes. Two of the most commonly discussed schemes are RoSCTL (Rebate of State and Central Taxes and Levies) and RoDTEP (Remission of Duties and Taxes on Exported Products).
Both schemes aim to reduce export costs and improve global competitiveness, but they are very different in terms of applicability, benefits, and industries covered.
If you’re unsure which one applies to your business, this guide will help you clearly understand the difference between RoSCTL and RoDTEP, and which scheme is best for you.
What is RoSCTL Scheme?
The RoSCTL scheme is specifically designed for the textile and apparel sector, providing rebates on embedded taxes and levies that are not refunded through other mechanisms. These include state taxes on fuel used in transportation, electricity duties, and other hidden costs within the supply chain. The primary objective of the scheme is to support textile exporters by reducing production costs and enhancing the global competitiveness of Indian garments.
Who Can Benefit from RoSCTL?
- Garment manufacturers
- Apparel exporters
- Made-ups exporters (home textiles, etc.)
limited to textile-related exports only
What is RoDTEP Scheme?
The RoDTEP scheme is a broader export incentive program that applies to multiple industries, not just textiles. It provides refunds to exporters for embedded duties and taxes that are not reimbursed through other mechanisms, including VAT on fuel, electricity costs, and other non-refundable taxes. The scheme covers almost all export sectors, with only a few exclusions, making it widely applicable across industries.
Who Can Benefit from RoDTEP?
- Engineering exporters
- Pharma companies
- Chemical exporters
- Agricultural exporters
- Most non-textile sectors
RoSCTL vs RoDTEP – Key Differences
Understanding the difference between these two schemes is crucial for choosing the right one.
| Factor | RoSCTL | RoDTEP |
| Full Form | Rebate of State & Central Taxes and Levies | Remission of Duties and Taxes on Exported Products |
| Industry Coverage | Textile & apparel only | Most export sectors |
| Benefit Type | Rebate of state & central taxes | Refund of embedded duties & taxes |
| Applicability | Limited to garments & made-ups | Broad applicability |
| Objective | Support textile exporters | Boost overall exports |
Simple takeaway:
RoSCTL = Textile-focused
RoDTEP = Multi-industry scheme
Which Scheme is Better for You? (Decision Guide)
Choosing the right scheme depends entirely on your business type.
✅ Choose RoSCTL if:
You export garments or apparel
You are part of the textile supply chain
Your products fall under eligible textile categories
✅ Choose RoDTEP if:
You are in non-textile industries
You export engineering, pharma, chemicals, etc.
Your products are covered under RoDTEP schedules
If your business deals in both textile and non-textile products, then:
Textile products → RoSCTL
Other products → RoDTEP
product-based
Benefits Comparison – RoSCTL vs RoDTEP
Both schemes aim to reduce export costs, but the type and scope of benefits differ. RoSCTL offers focused support for textile exporters by covering state and central taxes and helping improve pricing competitiveness in global markets. On the other hand, RoDTEP provides wider coverage across industries by refunding hidden taxes not addressed elsewhere, thereby helping exporters reduce their overall cost burden. In simple terms, RoDTEP is more flexible, while RoSCTL is more targeted.
Eligibility & Application Process
Both RoSCTL and RoDTEP schemes require exporters to comply with export regulations and coordinate with the Directorate General of Foreign Trade (DGFT). To be eligible, exporters must ensure that they are exporting notified or eligible products under the respective scheme and provide proper declarations in the shipping bill. Accurate documentation and adherence to DGFT guidelines are essential to avoid errors or rejection of benefits. The process typically involves exporting goods, selecting and declaring the applicable scheme in the shipping bill, after which the benefit is processed electronically and the incentives are received through the system.
How These Schemes Help Reduce Export Costs
Exporters often struggle with hidden costs such as fuel taxes, electricity charges, and local levies, which are not refunded through GST or other mechanisms and ultimately increase the final product price. Schemes like RoSCTL and RoDTEP help address this issue by refunding embedded taxes, reducing overall costs, and improving profit margins. As a result, exporters can offer more competitive pricing in global markets, gain better opportunities internationally, and increase their export volumes.
Common Mistakes Exporters Make
Many exporters fail to fully benefit from these schemes due to simple errors:
❌ Choosing the Wrong Scheme
Applying RoDTEP for textile exports or vice versa
❌ Incorrect Documentation
Missing or incorrect shipping bill details
❌ Lack of Awareness
Not knowing eligibility or benefit structure
❌ Missing Deadlines
Delays in compliance or claim process
loss of benefits or claim rejection
Industry-Wise Applicability
Here’s how these schemes apply across industries:
⚙️ Engineering Sector
Can You Claim Both RoSCTL and RoDTEP?
This is one of the most common questions.
Answer: No, not for the same product
A product eligible under RoSCTL cannot claim RoDTEP
Each product falls under a specific scheme
However:
✔ Different products under the same company can use different schemes
How AFLEO Helps You Choose the Right Scheme
Choosing between RoSCTL and RoDTEP is not always straightforward, as it involves understanding product classification, checking eligibility, managing documentation, and ensuring compliance with regulations. At AFLEO, we simplify this entire process for exporters by offering expert support in selecting the right scheme based on business type, handling end-to-end documentation, ensuring DGFT compliance, managing claim processing and follow-ups, and integrating customs and logistics for a seamless export experience.
FAQs
What is the main difference between RoSCTL and RoDTEP?
RoSCTL is for textile exporters, while RoDTEP applies to multiple industries.
Which scheme is better for exporters?
It depends on your industry. Textile exporters benefit from RoSCTL, while others use RoDTEP.
Can I apply for both schemes?
You cannot claim both for the same product, but different products can fall under different schemes.
How are benefits calculated?
Benefits are calculated based on notified rates and export value.
Is RoDTEP applicable to all industries?
Most industries are covered, but some exclusions apply.
Conclusion
Both RoSCTL and RoDTEP are powerful schemes designed to support Indian exporters, but choosing the right one depends on your industry, product category, and overall export structure. In simple terms, RoSCTL is meant for textile exporters, while RoDTEP applies to most other industries. Understanding the difference between these two schemes can help you maximize available benefits, reduce export costs, and improve your competitiveness in global markets.
Need Help Choosing the Right Scheme?
Consult experts to make the right choice and avoid costly mistakes in your export process. At AFLEO, we provide complete support for RoSCTL and RoDTEP schemes, DGFT compliance, and export incentives. Get in touch today to simplify your export operations with expert guidance and ensure you maximize the benefits available to your business.