The Union Cabinet meeting held by Honourable PM of India Mr Narendra Modi has approved to continue to provide Rebate of State and Central Taxes and Levies (RoSCTL) with the same rates to the Textile exporter as mentioned by the Textile Ministry for exports of apparel/garments. This will continue till March 31, 2024, this will help the Textile sector to boost & grow. This move will also help in enhancing the competitiveness & Productivity of the labour-intensive garment sector.
Sector enjoying RoSCTL will not be eligible to apply for benefit under RoDTEP new scheme launched by Government of India in new Budget for Foreign Trade Policy 2021-2025 which is implemented in place of MEIS scheme which is no more valid from December 31, 2021, which is intended to benefit other Export sectors other than Textile / Garment.
All the revenue details related to allotment of the script will be handled & maintained in electronic ledger format by the Revenue department in customs server & will be available to view by Exporters through ICDGATE. This script can be used by Exporter to import Raw material, Equipment & machinery without paying Basic customs duty & this script will be freely transferable to any other Importer in case the Exporter is not making any export this can be another form of revenue for them.
Textile ministry along with the department of revenue will be implementing a revised standard guide for the RoSCTL scheme with required flexibilities to fine-tune the operational details, implementation modalities and scheduling.
RoSCTL extension is expected to make Indian Textile products globally competitive by rebating all embedded taxes/levies which are currently not being rebated under any other mechanism. Initially, under the RoSCTL scheme, the maximum rate of rebate for apparel was 6.05 per cent while for made-ups this was up to 8.2%.
The made-up segment comprises home textiles products such as bed linen, curtains, pillows and carpets. Commenting on the latest decision, Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said the extension will help exporters get all embedded taxes and make products globally competitive.
IT is expected that the extension of RoSCTL will be bringing back positive sentiments among the Indian garment & textile segment, which indirectly will help the Indian textile value chain attain USD 100 billion annual exports in the next three years. The government is expecting this scheme will prove to be a major strategic decision towards generating lakhs of new employment, particularly for the vulnerable sections, including semi-skilled, rural youth, migrants and women in the MSME segment.
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