New Delhi, Nov 27 (KNN) In the aftermath of reports surfacing of a disturbed garments and apparel export sector, the government recently notified the post Good and Services Tax (GST) rates under the scheme for Remission of State Levies (RoSL) on exports of readymade garments, made-ups and under AA-RoSL for garments.

The Ministry of Textiles in a release informed 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.

The release further informed that 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%.

The Ministry said that the notification is part of the government’s strategy to handhold exports and employment generation in the apparel sector comprising of a fair share of Micro, Small and Medium Enterprises (MSMEs) in the country.

The new Notification is in supersession of Ministry of Textiles Notification No 14/26/2016-IT dated 28.9.2017, the release informed.

The new announced rates shall be effective from 01.10.2017.

Also earlier last week, the DGFT announced enhanced rates under the Merchandise Exports from India Scheme (MEIS) from 2% to 4% on readymade garments and made ups w.e.f 1st November 2017 till 30th June 2018. The announcement of an increased MEIS rate however failed to impress the sector. (With PIB Inputs) (KNN/DA)