Revised RoSL on readymade garments - made ups fail to cheer the sector, MSMEs say much more needs to be done
New Delhi, Nov 27 (KNN) In an attempt to address the garment sector comprising of a fair share of Micro, Small and Medium Enterprises (MSMEs) over the stress under the new taxation and fall in exports, the government recently announced revisions in the rate of MEIS as well as RoSL, this however has failed to cheer the sector
Talking to KNN, Animesh Saxena, a leading MSME exporter of garments said that there is utter dissatisfaction among the MSMEs as the new revisions still stand less as compared to what it used to be under the pre-GST era.
Saxena said that according to the new announcement the RoSL touches 1.7 per cent whereas earlier it used to be around 3.7 per cent.
He further said that even if the sector was to consider both the revisions and add it up, still there exist a margin of over 4-5 per cent as compared to the previous taxation, thus adding burden on the cost of production.
Saxena said that with the delay in publishing the data over exports of different sector, this too hints that the government is aware of the possible slowdown.
There have been several representations made both to the government and the GST Council but there have not been any positive step from the government so far.
With regard to the way forward, Saxena said that the last resort for the sector could be to bank upon the duty drawback and the government must fix that to help the sector survive.
Earlier the Ministry recently announced that the rates of RoSL are upto a maximum of 1.70% for cotton garments, 1.25% for MMF, Silk and Woolen garments and 1.48% for apparel of blends.
It further informed that the rates are upto a maximum of 2.20% for cotton made-ups, 1.40% for MMF and silk made-ups and 1.80% for made-ups of blends. For sacks and bags made of jute, the rate is 0.60%. The RoSL rate for garments under AA-AIR combination is 0.66%. (KNN/DA)