Circular No.ES/405 /2018-19 March 8, 2019
To: Members of the Council
Sub.: Cabinet approves Scheme to Rebate State and Central Embedded Taxes to Support the Textile Sector
Dear Member,
We are pleased to inform you that the Hon’ble Prime Minister Narendra Modi has approved the Scheme to Rebate State and Central Embedded Taxes to Support the Textile Sector vide Press Release issued on 7th March, 2019. This will enable the Government to take various measures for making exports of apparel and made-ups zero rated.
As you are aware, currently, apparel and made-ups segments are supported under the Scheme for Rebate of State Levies (RoSL). However, certain State as well as Central Taxes continued to be present in the cost of exports.
Now, the Cabinet has taken the following decisions–
To provide for a scheme to rebate all embedded State and Central Taxes/levies for apparel and made-ups which have a combined share of around 56% in India’s textile export basket.
Rebate of taxes/levies has been permitted through an IT-driven scrip system at notified rates.
Benefits:
The proposed measures are expected to make the textile sector competitive.
Rebate of all Embedded State and Central taxes/levies for apparel and made-ups segments would make exports zero-rated, thereby boosting India’s competitiveness in export markets and ensure equitable and inclusive growth of textile and apparel sector.
This decision will greatly benefit apparel & made-ups manufacturers/exporters,
The Ministry of Textiles has issued Notification No. 14/26/2016-IT (Vol.II) dated 7th March, 2019 on the above issue. As per the Notification, the New Scheme will be called Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) on export of Garment and Made-ups and shall remain in force upto 31st March, 2020.
For more information on the New Scheme, please download the link.
Member may kindly make a note of the above.
Thanking you,
Yours faithfully,
S. BALARAJU
EXECUTIVE DIRECTOR
