Apparel exporters seek more clarity on new tax rebate scheme

Tirupur: The Apparel Export Promotion Council (AEPC) has sought a clarification on disbursal of the recently-announced rebate of state and central taxes and levies (RoSCTL) on export of garments and made-ups from the Union commerce ministry.
AEPC acting chairman A Sakthivel had met union commerce minister Suresh Prabhu in Delhi on Monday in this regard.“Though RoSCTL was announced on March 7, there is clarity on how to apply for it and disbursal mechanism. The ministry should also clarify how exporters would get RoSCTL refunds in the transition period,” Sakthivel said.
Pointing out that export business has significantly picked up after the announcement of the scheme, he also requested the minister to implement it as early as possible to help exporters to take full benefit of the scheme.
The rebate on state levies (RoSL) for the apparel exports was reduced to 1.7% from 3.5% when the GST was implemented. Now, along with 1.7% RoSL, 4.35% rebate of central embedded taxes and levies would be provided to exporters under the RoSCTL scheme, which would be valid only up to March 31, 2020.