IMPRESSIONS from a Cross-section


How will the government's decision to rebate all embedded state and Central taxes/levies for apparel and made-ups segments help growth and exports of Indian textiles and apparel?

RoSCTL is need of the hour
The Union Cabinet has approved the scheme to rebate of state and Central embedded taxes to support the textile sector. Fibre2Fashion asks a cross-section of the industry about the impact of the decision.

The government's decision to introduce a new scheme for Rebate of State and Central Taxes and Levies on Export of Garments and Made-ups (RoSCTL) is a historic decision, and it will be a game changer for the industry. 

The Union Cabinet has approved a new scheme RoSCTL, by discontinuing the existing scheme for Rebate of State Levies (RoSL) for both apparel and made-ups. The news RoSCTL rate will enhance our competitiveness, which is need of the hour to sustain in the global market.

The proposed measures under RoSCTL will enable the government to take various measures for making exports of apparel and made-ups free of any embedded Central and state levies. It will boost India's competitiveness in export markets and ensure equitable and inclusive growth of apparel and made-ups sector.

The RoSCTL has come at a right time and would benefit the garmenting and made-ups segments. This would also increase the demand from the downstream sector and thereby strengthen the entire cotton textiles value chain.

This is a very good step towards the growth of the apparel export sector and Indian exporters can compete with other countries with favourable duty structures in big export markets. This support will motivate exporters to book bulk orders, and in turn will help them to increase their capacity utilisation levels.

Exporters of made-ups especially home textiles from India face huge disadvantage in leading export markets due to high import duties as compared to imports from other competing nations. RoSCTL will go a long way in helping the exporters in overcoming this disadvantage and to increase exports.

The ministry of textiles is amending the present RoSL scheme, to include all embedded state and Central taxes and levies on garments for rebate, ensuring zero rated exports. This will indeed support garment exports by giving exporters an edge over competing countries to negotiate for better business from overseas. 

Published on: 11/03/2019

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.

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