The Central Government has announced an extension of the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for the export of apparel/garments and made-ups until March 31, 2026.
This scheme offers benefits of up to 6 per cent to exporters in these sectors. Initially set to conclude on March 31, 2024, the uncertainty surrounding its expiration hindered exporters from accepting new orders beyond that date.
Bharat Chhajer, Former Chairman, Powerloom Development and Export Promotion Council (PDEXCIL), says, the extension will ensure stability in the policy regime, lower the tax burden and provide a level playing field on the principle that “goods are exported and not domestic taxes. The decision is particularly significant for the textile industry in Gujarat, a prominent textile hub, he adds.
The RoSCTL scheme aims to offset state and central taxes and levies through rebates, alongside the duty drawback scheme, for exports of apparel-garments and made-ups. The central principle is to prevent the exportation of taxes and duties, fostering a level playing field for exports.
Rahul Shah, Co-chairman, Textile Committee, GCCI, highlights the challenges facing the textile sector. Citing a decline in India's textile and apparel exports from April to November 2023, he says, the extension of the RoSCTL scheme provides much-needed support to exporters of garments and made-ups, offering a potential boost to the industry.
