New Delhi, Jul 14 (KNN) The Union Cabinet chaired by the Prime Minister, Narendra Modi has given its approval for continuation of Rebate of State and Central taxes and Levies (RoSCTL) with the same rates as notified by Ministry of Textiles vide Notification dated March 8th, 2019, on exports of Apparel/Garments (Chapters-61 & 62) and Made-ups (Chapter-63) in exclusion from Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for these chapters.

The scheme will continue till 31st March 2024.

According to an official statement on Wednesday, the other Textiles products (excluding Chapters-61, 62 & 63) which are not covered under the RoSCTL shall be eligible to avail the benefits, under RoDTEP along with other products as finalised by Department of Commerce from the dates which shall be notified in this regard.

Continuation of RoSCTL for Apparel/Garments and Made-ups is expected to make these products globally competitive by rebating all embedded taxes/levies which are currently not being rebated under any other mechanism. It will ensure a stable and predictable policy regime and provide a level playing field to Indian textiles exporters.

''Further, it will promote startups and entrepreneurs to export and ensure creation of lakhs of jobs,'' it added.

Realizing the importance of refund of embedded taxes, cesses and duties, the Ministry of Textiles first launched a scheme by the name of Rebate of State Levies (ROSL) in 2016. In this scheme the exporters of apparel, garment and made-ups were refunded embedded taxes and levies through the budget of the Ministry of Textiles. In 2019, the Ministry of Textiles notified a new scheme by the name Rebate of State and Central Taxes and Levies (RoSCTL). Under this scheme, the exporters are issued a Duty Credit Scrip for the value of embedded taxes and levies contained in the exported product. Exporters can use this scrip to pay basic Customs duty for the import of equipment, machinery or any other input.

Just one year after the launch of RoSCTL the pandemic set in and it has been felt that there is a need to provide some stable policy regime for the exporters.  In the textiles industry, buyers place long term orders and exporters have to chalk out their activities well in advance, it is important that the policy regime regarding export for these products should be stable.

''Keeping in view the same, the Ministry of Textiles has decided to continue the scheme of RoSCTLupto 31st March, 2024 independently as a separate scheme,'' the statement said.

Continuation of RoSCTL scheme will help generate additional investment and give direct and indirect employment to lakhs especially women.