Govt extends tax rebate scheme for garments’ export by 2 years

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New Delhi, Feb 1 (IANS) The Union Cabinet chaired by Prime Minister Narendra Modi on Thursday approved the continuation of the Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) for export of apparel/garments and made-ups up to March 31, 2026.

Continuation of the Scheme for the proposed duration of two years will provide a stable policy regime which is essential for long-term trade planning, more so in the textiles sector where orders can be placed in advance for long term delivery.

The continuation of RoSCTL will also help remove the burden of taxes and levies and provide level playing field on the principle that “goods are exported and not domestic taxes”.

The Union Cabinet had given approval of the scheme up to 31.03.2020 and further approval was given for continuation of RoSCTL till March 31, 2024.

The objective of the scheme is to compensate for the State and Central Taxes and Levies in addition to the Duty Drawback Scheme on export of apparel/garments and made-ups 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. Hence, 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.



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