CAG Customs Audit Report No. 25 of 2026: Key Findings on RoSCTL Scheme and Customs Duty Violations
Overview of the Audit Report
The Comptroller and Auditor General of India released Compliance Audit Report No. 25 of 2026, covering the Department of Revenue (Customs) and the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, for the financial period ending 31 March 2024. The report was laid before Parliament on 13 August 2026.
The report encompasses 106 audit paragraphs, including a dedicated Subject Specific Compliance Audit focused on the Rebate of State and Central Taxes and Levies (RoSCTL) Scheme. The aggregate revenue implication arising from the findings stands at a significant ₹667 crore.
Out of 106 paragraphs flagged, the concerned Ministries and Departments accepted 104 paragraphs and initiated corrective action involving a monetary value of ₹55 crore through the issuance of Show Cause Notices (SCNs) and adjudication proceedings. Additionally, recoveries amounting to ₹21 crore were reported across 56 cases involving incorrect assessment of Customs duties.
Chapter I: Audit Coverage and Field-Level Observations
During FY 2023–24, CAG audit teams issued 195 Inspection Reports to various Commissionerates and Regional Licensing Authorities. These reports contained 1,684 observations with a combined revenue implication of ₹472 crore.
Of these, the current report specifically addresses 106 audit observations carrying a cumulative revenue implication of ₹667 crore. These observations were formally communicated to both concerned Ministries between August 2025 and January 2026. The remaining observations are being actively pursued at the level of respective field formations.
Key Takeaway: The Ministries accepted 104 out of 106 audit cases and initiated rectification measures worth ₹55 crore, with actual recoveries of ₹21 crore already reported in 56 instances of incorrect Customs duty assessments. (Paragraph 2.6)
Chapter II: Subject Specific Compliance Audit — RoSCTL Scheme
What Is the RoSCTL Scheme?
The Rebate of State and Central Taxes and Levies (RoSCTL) Scheme is an export promotion mechanism that provides rebates to eligible exporters — primarily in the apparel and made-up textiles sector — for embedded State and Central taxes and levies that are otherwise not refunded through any other route. The scheme operates through the issuance of electronic scrips (e-scrips), which can be used for payment of Customs duties.
Scope of the Audit
A dedicated Subject Specific Compliance Audit was undertaken to evaluate:
- Whether prescribed rules and procedures were being adhered to by DGFT and Customs
- The effectiveness of internal controls within the RoSCTL framework
- The overall implementation quality of the scheme