Circular No. ES/212/2019-20 18th January, 2020
To: Members of the Council
Sub.: Additional Ad-Hoc Incentive to Apparel and Made-ups
As you are aware, in order to rebate all embedded State and Central Taxes and Levies on apparel and made-ups, Ministry of Textiles had earlier notified the scheme for Rebate of State and Central Taxes and Levies (RoSCTL) vide Notification No. 14/26/2016-IT (Vol.II) dated 07th March, 2019 and vide Notification No. 14/26/2016-IT (Vol.II) dated 08th March, 2019, notified the rates under the RoSCTL scheme.
Now, Ministry of Textiles has issued Notification No. F. No. 14/26/2016-IT/VOl. II dated 14th January, 2020 announcing a special one–time additional ad-hoc incentive of upto 1% of FoB value for exports of Apparel and Made- ups to offset the difference between RoSCTL and RoSL + MEIS@4%, from 7th March, 2019 to 31st December, 2019.
If the RoSCTL benefit between 7th March, 2019 and 31st December, 2019 is lower than the combined incentives under the MEIS and RoSL, the government would provide an additional ad-hoc incentive of upto 1% of FoB value of exported products, with a cap of `600 crore, for this period.
Following are the recommendations of the Expenditure Finance Committee (EFC) during its meeting held on 30th December, 2019 —
Members may kindly make a note of the above details.