TexMin extends RoSCTL scheme beyond March 2020
The Ministry of Textiles has issued a notification extending the Scheme of Rebate of State and Central Taxes and Levies on Export of Garments and Made-ups (RoSCTL), which was in force up to March 31, 2020.
The Ministry of Textiles has issued a notification extending the Scheme of Rebate of State and Central Taxes and Levies on Export of Garments and Made-ups (RoSCTL), which was in force up to March 31, 2020. The RoSCTL scheme provides rebate on all embedded taxes on exports.
â€œThe Government has decided to continue the said Scheme w.e.f. April 01, 2020 until such time that the RoSCTL Scheme is merged with Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme without any change in Scheme guidelines and rates as notified (earlier),â€ said the notification.
Finance Minister Nirmala Sitharaman had in September last year approved the RoDTEP to incentivise exporters at an estimated cost of Rs 50,000 crore to the exchequer.
She had said RoDTEP will replace the existing incentive schemes and â€œwill more than adequately incentivise exporters than the existing schemes put together.â€
“The textile and apparel industry was of the opinion that government should not withdraw RoSCTL till RoDTEP comes into force effectively, as it will hurt the cost competitiveness of Indian apparels and made-ups in the international market where Indian products have to compete with cheap products of China, Bangladesh, Vietnam, etc,” Confederation of Indian Textile Industries Chairman T Rajkumar.
He observed that the continuation of RoSCTL will make Indian apparels and made-ups cost competitive internationally by rebating all taxes and levies which are currently not being rebated under any other scheme.