Garment exporters will continue to get a rebate on central and state taxes on their outward shipments as the government on Wednesday approved the extension of the RoSCTL scheme till March 2024.
“The Union cabinet chaired by Prime Minister Narendra Modi has given its approval for the continuation of Rebate of State and Central Taxes and Levies (RoSCTL) with the same rates as notified by the ministry of textiles for the export of apparel/garments and made-ups,” information and broadcasting minister Anurag Thakur told reporters on Wednesday.
Under this scheme, exporters are issued a duty credit scrip for the value of embedded taxes and levies contained in the exported product. Exporters can use this scrip to pay basic customs duty for the import of equipment, machinery or any other input. These scrips are tradeable. So, if the exporter does not need this for his personal use, he can transfer the same to any other importer.
The textile ministry had fixed a maximum rate of rebate for apparel at 6.05 per cent while for made-ups, it was up to 8.2 per cent.
The made-ups segment comprises home textile products such as bed linen, curtains, pillows and carpets.
Shipping subsidy
The cabinet also approved a scheme to provide Rs 1,624 crore over five years as subsidy to Indian shipping companies in global tenders floated by ministries and CPSEs for the import of government cargo, an official statement said.
According to the statement, registration shall be done online within 72 hours and this will make it easy and attractive to register ships in India and thereby help boost the Indian tonnage.
