The government on Wednesday approved a state and central tax and duty concession (ROSCTL) scheme for textile exports until March 2024. In addition, apparel exporters continue to receive exemptions on central and state taxes on their exports as before. The objective of this initiative is to increase the competitiveness of the labor intensive textile sector.
The Cabinet meeting chaired by Prime Minister Narendra Modi was approved to proceed with the RoSCTL project. This approval has been granted and exported (sheets, blankets, carpets etc.) at the rate suggested by the Ministry of Textiles for textile exports. Information and Broadcasting Minister Anurag Thakur told reporters on Wednesday, “This scheme will continue till March 31, 2024. This will help exports and job creation.
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However, as per rules laid down by the Ministry of Commerce, textile products that are not covered under the AOSCTL scheme are eligible to take advantage of the RODTEP scheme along with other products. The implementation of the project will be done by the Revenue Department. The Ministry of Textiles, in consultation with the Revenue Department, releases revised guidelines for the continuation and implementation of the AOACCTL project.
According to the official statement, “Continuing RoSCTL for Textiles / Clothing and Made-ups will enable these products to be globally competitive with exemptions on taxes and duties.” The exporter may use this invoice to pay the basic customs duty to import equipment, machinery or other raw materials.
These invoices can be traded. That is, if the exporter does not require it for his personal use, he may transfer it to another importer. Previously, the maximum discount rate on apparel under the RoSCTL scheme was 6.05 percent, compared to 8.2 percent for make-up.
Textile Export Promotion Council (AEPC) Chairman A Shakthivel spoke about the decision, saying the expansion of the project will help exporters collect all taxes and make products globally competitive. “This project will help bring back the positive emotions in the sector and help the Indian textile value chain achieve annual exports of $ 100 billion over the next three years,” he said.