India has amended the Rebate of State and Central Taxes and Levies (RoSCTL) scheme.

So Indian garment exporters have got relief from favorable appreciation in transferable duty credit scrips. The amendment will provide relief to the garment sector and ensure maximum refund of the RoSCTL amount will help exporters meet their working capital requirements.Further, it will give an impetus to the garment sector to perform better at a much faster pace. For ensuring continuity, the scheme will continue till March, 2024.

However, exporters are still facing various issues. They want deletion of the provision making the transferee liable to RoSCTL conditions. Exporters can generate scrips immediately after the shipment of export consignments but the realisation of payment use takes months.After a certain time, customs officials had the authority to take action for recovery of the scrip amount. Now the original beneficiary of the scrip will be liable in case of non-realisation of export payments.

Under the RoSCTLscheme, the maximum rate of rebate for apparel is 6.05 per cent while for made-ups it is 8.2 per cent. However, with the deep discount, exporters were getting between 4.8 per cent to 6.4 per cent and were losing 1.2 per cent to 1.6 per cent in the shape of discount.