Continuation of Rebate for Export of Garments

  • Approved by the Union Cabinet chaired by Prime Minister Mr Narendra Modi.
  • The continuation of the Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) for export of Apparel/Garments and Made-ups.

Key Highlights:

  • The extension is up to 31st March 2026.
  • It helps in enhancing export competitiveness.
  • It makes apparel/garments cost-competitive and adopts the principle of zero-rated export.
  • The aim is to compensate for the State and Central Taxes and Levies in addition to the Duty Drawback Scheme on export by way of rebate.
  • It is based on an internationally acceptable principle that taxes and duties should not be exported, to enable a level playing field in the international market for exports.
  • Not only indirect taxes on inputs are to be rebated or reimbursed but also other un-refunded State & Central taxes and levies are to be rebated.

The Rebate Includes:

  • VAT on fuel used in transportation, captive power, and farm sector.
  • Mandi
  • Duty of electricity.
  • Stamp duty on export documents.
  • embedded SGST paid on inputs such as pesticides, fertilizers etc. used in the production of raw cotton, purchases from unregistered dealers, coal used in the production of electricity and inputs for the transport sector.
  • Central excise duty on fuel used in transportation.
  • Embedded CGST paid on inputs such as pesticides, fertilizer etc. used in the production of raw cotton, purchases from unregistered dealers, and inputs for the transport sector.
  • Embedded CGST and Compensation Cess on coal used in the production of electricity.
Posted in Current Affairs.