AEPC urges Fin Min to continue RoSL and include state levies not subsumed in GST

New Delhi, July 24 (KNN) The apparel exporters have sought continuation of Rebate of State Levies (RoSL) Scheme after GST implementation and inclusion of other state levies not subsumed in the GST. The demand was made by Apparel Export Promotion Council (AEPC) to the Finance Ministry.

AEPC has also asked Finance Ministry for a drawback for central taxes outside the GST purview besides full accumulated input GST Tax Credit.

AEPC has said that for the MSMEs engaged in apparel exports, this whole taxation system and procedures are new, a longer transitionary phase would have helped.

In a presentation made before the drawback committee, AEPC raised the issue of embedded blocked taxes which the Industry is facing in central taxes.

The committee was also apprised about the new levies like intra company stock transfers, GST on job work, etc. which has been imposed in the GST regime but not being factored in earlier announced drawback rates, will lead to cost escalation, specially in the transitionary phase.

AEPC said GST has diluted most of the FTP benefits that the industry was availing so far besides putting a huge pressure on the working capital. It is now important that all the taxes - direct and indirect are reimbursed under the drawback and ROSL benefits.

In its submission to the drawback committee, AEPC has also made a request for exempting samples from GST to buying agents / buyers within India or abroad as sending samples to buying agents / buyers within India is a prerequisite for getting business.