To: Members of the Council
Sub: Government approves continuation of Rebate of State and Central taxes and Levies (RoSCTL) on Export of Apparel/ Garments and Made-ups
We are glad to inform you that the Government of India has given its approval for continuation of Rebate of State and Central taxes and Levies (RoSCTL) with the same rates as notified by Ministry of Textiles vide Notification dated 8th March 2019 on exports of Apparel/Garments (Chapters-61 & 62) and Made-ups (Chapter-63) in exclusion from Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for these chapters. The scheme will continue till 31st March 2024. in this regard, a Press Release dated 14th July, 2021 has been issued by the Cabinet.
Please make a note of the following important points -
Some of the cess, duties for which taxes and levies are not refunded and are part of embedded taxes directly and indirectly, are duties & cesses on fuel used for transportation of goods, generation of power and for the farm sector, Mandi Tax, Duty on electricity charges at all levels of the production chain, Stamp duty, GST paid on input such as pesticides, fertilizers, etc., GST paid on purchases from unregistered dealers, etc. and Cess on coal or any other products.
Realizing the importance of refund of embedded taxes, cesses and duties, Ministry of Textiles first launched the Rebate of State Levies (ROSL) Scheme in 2016. Under this Scheme exporters of apparel, garment and made-ups were refunded embedded taxes/levies.
In 2019, Ministry of Textiles notified the Rebate of State and Central Taxes and Levies (RoSCTL) Scheme. Under this scheme, exporters are issued a Duty Credit Scrip for the value of embedded taxes/ levies contained in the exported product. Exporters can use this scrip to pay basic Customs duty for the import of equipment, machinery or any other input.
Just one year after launch of RoSCTL, the pandemic set in and it has been felt that there is a need to provide some stable policy regime for the exporters. In the textiles industry, buyer places long term orders and exporters have to chalk out their activities well in advance, it is important that the policy regime regarding export for these products should be stable. Hence, Ministry of Textiles has now decided to continue the scheme of RoSCTL upto 31st March, 2024 independently as a separate scheme. Continuation of RoSCTL scheme will help generate additional investment and give direct and indirect employment to lakhs especially women.
For detailed information, members may kindly refer to the Press Release dated 14th July, 2021 has been issued by the Cabinet.
Members may kindly make a note of the above and do the needful at the earliest.