Scheme for Rebate of State Levies (RoSL) on export of Garments and Made ups — Post GST Rates notified

Circular No.ES/238/2017-18 November 28, 2017

To: Members of the Council

Sub: Scheme for Rebate of State Levies (RoSL) on export of Garments and Made ups — Post GST Rates notified

Dear Member,

We would like to inform you that the Government has announced Post GST Rates for Rebate of State Levies (ROSL) on Export of Garments and Made-ups vide Ministry of Textiles Notification No. 14/26/2016-IT dated 24th November, 2017. These RoSL rates are for Garments, Garments under AA-AIR combination and made-up textile articles.

These rates shall be effective from 01.10.2017.

A brief of the Scheme –

In a bid to boost employment generation in the employment intensive textiles and apparel sector the Government notified the scheme for Remission of State Levies on export of garments and made ups through the mechanism of rebate.

The two schemes have been merged under the Scheme for Rebate of State Levies on Export of Garments and Made-ups.

As you are aware, the Government had issued guidelines of RoSL for garments and made-ups notified vide Notifications No.12020/03/2016-IT dated 12.8.2016 and No.12015/47/2016-IT dated 3.1.2017 respectively and amended the same which read as follows:

Existing Para

Revised Para

3.5. Rebate of State Levies shall be understood to comprise State VAT/CST on inputs including packaging, fuel, duty on electricity generation and duties and charges on purchase of grid power, as accumulated through the stages of production from yarn to finished Made-ups.

3.5. Rebate of State Levies shall be understood to comprise VAT on fuel used in transportation (raw materials, finished goods and factory workers), VAT on fuel used in generation of captive power, Mandi tax on purchase of cotton, duty on electricity used in manufacture as accumulated from stage of Cotton/MMF fibre till garment/made up stage, stamp duties on export documents and SGST on inputs used in production of cotton and embedded SGST in purchases from unregistered dealers”

The rates are slightly higher than the earlier ROSL rates which were announced vide Government vide Notification No. 14/26/2010- IT dated 28^th September 2017.

Post-GST rates of RoSL are as follows -

Sr. No.	Item	Rate
(1)	Cotton garments	upto a maximum of 1.70%
(2)	MMF, Silk and Woolen garments	1.25%
(3)	Apparel of blends	1.48%
(4)	Cotton made-ups	maximum of 2.20%
(5)	MMF and silk made-ups	1.40%
(6)	Made-ups of blends	1.80%
(7)	Sacks and bags made of jute	0.60%
(8)	Garments under AA-AIR combination	0.66%

Comparison of earlier ROSL and latest ROSL on Made –ups

	Earlier ROSL (% of FOB vale of export)	Latest ROSL (% of FOB vale of export)
MMF	0.97	1.40
Blended	1.26	1.80
Cotton	1.55	2.20

In supersession of Ministry of Textiles’ Notification No 14/26/2016-IT dated 28.09.2017 the exporter may claim RoSL rates for export of garments, made-ups and AA-RoSL for garments.

The exporter shall have to give an undertaking that he has not claimed or shall not claim credit / rebate / refund / reimbursement of these specific state levies under any other mechanism.

Members may make a note of the above changes.

Thanking You,

S. BALARAJU
EXECUTIVE DIRECTOR