On July 14, the
Cabinet approved the continuation of the Rebate of State and Central Taxes and
Levies (RoSCTL) scheme under which garment exporters will continue to get a
rebate on central and state taxes on their outward shipments till March 2024.
The notification said the adequate safeguard mechanism would be put in place
for effective monitoring of realisation of the export proceeds.
For the purpose of
audit and verification, the exporter would be required to keep records to
substantiate their claims made under the scheme. And, the Central Board of
Indirect Taxes and Customs (CBIC) would put a monitoring and audit mechanism,
with an information technology-based risk management system (RMS), in place.
The textiles ministry will conduct an annual impact analysis of the scheme.
Rebate of state
taxes and levies would include VAT on fuel used in transportation, mandi tax,
duty of electricity, and stamp duty on export documents. They will also include
embedded SGST and CSGT paid on inputs such as pesticides and fertilisers used
in production of raw cotton, central excise duty on fuel used in
transportation, embedded CGST and compensation cess on coal used in production
of electricity. The scrips will be issued electronically on customs system. It
will be used for payment of basic customs duty on import of goods. They are
freely transferable.
Commenting on the
latest decision, Apparel Export Promotion Council (AEPC) Chairman A Sakthivel
said the extension will help exporters get rebate on all embedded taxes and
make products globally competitive. Sakthivel, who is also the FIEO president,
said this will help exporters effectively compete with countries such as
Bangladesh, Vietnam, Myanmar, Cambodia, and Sri Lanka.
Source: Business Standard
Image
Source: Google Images
Also Read: