Indian garment exporters have got immediate relief from favourable appreciation in transferable duty credit scrips as the government has made amendment in the Rebate of State and Central Taxes and Levies (RoSCTL) scheme. Garment exporters’ bodies have welcomed the government’s decision stating that it was a much-needed step for the industry.
Under the RoSCTL Scheme, maximum rate of rebate for apparel is 6.05 per cent, while for the made-ups it is 8.2 per cent. However, with the deep discount, exporters were getting in between 4.8 per cent to 6.4 per cent, losing 1.2 per cent to 1.6 per cent in the shape of discount.
“The appreciation was noticed in last one week. The value of credit scrips increased from 90 per cent to 97.5 per cent. Exporters expected realisation of 97-98 per cent of scrips,” said Vimal Shah, president of Garment Exporters Association of Rajasthan (GEAR). “I could not understand, why the scrips appreciated in last one week. But I came to know about the notification now,” he added with happiness.
Apparel Export Promotion Council (AEPC) chairman Narendra Goenka said that the AEPC had been requesting that the transferee clause as given in the Notification No. 77/2021 dated 24.09.2021 of DoR, making transferee liable in the case of non-realization of the exporter proceeds should be deleted. He thanked the government for accepting the demand.
