Why in news?
• Garment and made-up exporters who have Rebate of State Levies (ROSL) Scheme arrears will receive it in the form of scrips, according to a Department of Revenue communication.
Key highlights:
• The ROSL Scheme, which reimburses the State levies that garment and made-up exports incurred, was discontinued on March 7 last year and replaced with the Rebate of State and Central Taxes and Levies scheme.
• In order to clear pending claims under the ROSL scheme, ₹464.13 crores has been allocated for the issue of duty credit scrips by the DGFT to exporters who have pending claims, according to the communication.
• The Cotton Textiles Export Promotion Council has welcomed the move while pointing out that exporters were in need of funds now and that the scrips would provide relief.
• They can use it for imports too, if needed, according to the Council.
Rebate of State Levies (ROSL) Scheme
- Last year, the Union Cabinet has approved the Scheme to Rebate State and Central Embedded Taxes to Support the Textile Sector.
- The scheme aimed to reimburse the State levies that garment and made-up exports incurred.
- But it was discontinued on and replaced with the Rebate of State and Central Taxes and Levies scheme.
Relevance of the Scheme
- ROSL plays a vital role for the exporters by providing zero-rated taxation on apparel and made-up products.
- This scheme enabled the exporters to increase traffic, enhance competitiveness among the global market, and compete against countries such as Sri Lanka, Bangladesh, Cambodia and Vietnam, who enjoy zero taxation.
- This also benefits the traders who export to the European Union (EU), India’s largest export market for the apparel sector, facing a tariff variation of 9.6 per cent.
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