The government has announced post-GST rates for claiming rebate of state taxes under the scheme for Remission of State Levies (RoSL) on exports of readymade garments and made-ups to enhance exports. The government has also doubled the rates for incentives under an export promotion scheme MEIS to 4 per cent for readymade garments and made-ups.
Union textiles minister Smriti Irani in a series of tweets said post-GST rates for remission of state levies/taxes and enhanced Merchandise Exports from India Scheme (MEIS) rates will boost exports of garments and made-ups. “Announcement on post-GST rates of RoSL will be effective from 1 Oct 2017. Post-GST rates for remission of state levies/taxes will boost exports of garments and made-ups,” Irani tweeted. In another tweet, the minister wrote enhanced MEIS rates will boost exports of garments and made-ups from India.
AEPC was relieved that the increase in MEIS rates will help ensure fulfilment of orders for the Christmas season as it will help in releasing blocked capital. In a release, the Textiles Ministry said post-GST rates of RoSL are up to a maximum of 1.70 per cent for cotton garments; 1.25 per cent for MMF, silk and woolen garments; and 1.48 per cent for blended apparel.
The Ministry said the notification of post-GST RoSL rates for rebate of state levies/taxes is following the decision of the government to enhance exports and employment generation in the labour intensive textiles and apparel segment.
The Directorate General of Foreign Trade (DGFT) has enhanced rates for garments and made-ups to 4 per cent of value of exports from 2 per cent under MEIS. New MEIS rates are effective from November 1. Under the MEIS scheme, the commerce ministry gives duty benefits to several products. It provides duty benefits at 2 per cent, 3 per cent and 5 per cent depending upon the product and country. The DGFT said the rates for incentives under MEIS for two subsectors of textiles industry — readymade garments and made-ups — have been raised to 4 per cent of value of exports with effect from November 1 till June 30 next year.