The Cabinet on Wednesday extended the period for the continuation of Rebate of State and Central Taxes and Levies (RoSCTL) for export of garments and made-ups from April 1, 2020 (till the scheme is merged with Remission of Duties). This has been done with the intention to make the textile sector competitive by rebating all taxes/levies which are currently not being rebated under any other mechanism. The scheme was offered for embedded state and central duties and taxes that are not refunded through goods and services tax.
On March 13, the government had approved RoDTEP, a scheme designed for exporters to reimburse taxes and duties paid by them such as value added tax, coal cess, mandi tax, electricity duties and fuel used for transportation, which are not getting exempted or refunded under any other existing mechanism.
“RoSCTL scheme for apparel and made-ups will be continued with effect from April 1, 2020 without any change in scheme guidelines and rates as notified by ministry of textiles till such time that the RoSCTL is merged with RoDTEP,” the government stated.
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