New Delhi, Nov 25 (PTI) The government has announced thepost-GST rates for claiming rebate of state taxes under thescheme for Remission of State Levies (RoSL) on exports ofreadymade garments and made-ups, in a bid to support theoutward shipments.
The government has also doubled the rates for incentivesunder an export promotion scheme -- MEIS -- to 4 per cent forreadymade garments and made-ups.
In a series of tweets, Union Textiles Minister SmritiIrani said post-GST rates for remission of state levies/taxesand Enhanced Merchandise Exports from India Scheme (MEIS)rates will boost exports of garments and made-ups.
Garment exporters' body AEPC said the increase in MEISrates will help in the fulfilment of orders for the Christmasfestival as it will help in unblocking the blocked capital.
In a release, the textiles ministry said post-GST ratesof RoSL are up to a maximum of 1.70 per cent for cottongarments, 1.25 per cent for MMF, silk and woolen garments and1.48 per cent for apparel of blends.
The ministry said the notification of post-GST RoSL ratesfor rebate of state levies/taxes is in pursuance of thedecision of the government to boost exports and employmentgeneration in the labour intensive textiles and apparelsector.
The Directorate General of Foreign Trade (DGFT) hasenhanced rates for garments and made-ups to 4 per cent ofvalue of exports from 2 per cent under MEIS. New MEIS ratesare effective from November 1.
"Announcement on post-GST rates of RoSL will be effectivefrom 1 Oct 2017. Post-GST rates for remission of statelevies/taxes will boost exports of garments & made-ups," Iranitweeted.
In another tweet, the minister said the enhanced MEISrates will further boost exports of garments and made-ups fromIndia.
Under the MEIS scheme, the commerce ministry gives dutybenefits to several products. It provides duty benefits at 2per cent, 3 per cent and 5 per cent depending upon the productand country.
The DGFT said the rates for incentives under MEIS for twosubsectors of textiles industry -- readymade garments andmade-ups -- have been enhanced to 4 per cent of value ofexports with effect from November 1 till June 30 next year.
As a result, the estimated annual incentives will be Rs1,143.15 crore for 2017-18 and Rs 685.89 crore for 2018-19,the commerce ministry said in a statement.
Commenting on the measures, H K L Magu, Vice Chairman ofAEPC, said the garment exporters' body has been demanding theincrease in rates of MEIS along with RoSL and duty drawbackfrom a long time.
"We are also hopeful that the government will interveneand address the issue of restoration of the old duty drawbackrates as the sharp reduction in the rates of duty drawback hasdealt a huge blow on the competitiveness of the industry," hesaid.
Ready made garment exports dipped by about 40 per centto USD 829.44 million in October. PTI NKDMKJ.
This is unedited, unformatted feed from the Press Trust of India wire.