The union cabinet on Wednesday extended the Rebate of State and Central Levies and Taxes (RoSCTL) scheme till March 2024, a move aimed at helping the textile exporters.
“Continuation of RoSCTL for apparel/garments and made-ups is expected to make these products globally competitive by rebating all embedded taxes/levies which are currently not being rebated under any other mechanism. It will ensure a stable and predictable policy regime and provide a level playing field to Indian textiles exporters. Further, it will promote startups and entrepreneurs to export and ensure creation of lakhs of jobs,” an official statement said.
The sectors covered under this scheme--apparel/garments and made-ups--will not get benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. However, textiles products which are not covered under the RoSCTL would be eligible to avail the benefits, if any, under RoDTEP scheme.
Under the RoSCTL scheme, exporters are issued a duty credit scrip for the value of embedded taxes and levies contained in exported products. Exporters can use this scrip to pay tax while importing equipment, machinery.
“In the textiles industry, buyer place 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. Keeping in view the same, the Ministry of Textiles has decided to continue the scheme of RoSCTL upto 31st March, 2024 independently as a separate scheme,” the statement said.
A Sakthivel, President, Federation of Indian Export Organisations (FIEO) said that this is a huge support to apparel and made-up sectors and will help to increase their competitiveness immensely.
“Many neighbouring countries have emerged as our competitors having tariff advantage either on account of LDC status or owing to effective free trade agreements. The extension of RoSCTL benefit coupled with free trade partnership with US, UK, EU, Australia, Canada, etc. would be a game changer for Indian apparel and made-ups sectors and will help the sector to get its rightful share in the global trade,” Sakthivel added.
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