Apparel exporters ask for RoSCTL refunds in cash

By

Isabelle Crossley

Published
Jun 27, 2022

Garment exporters are asking the government to provide its Rebate of State and Central Taxes and Levies in cash and have stated that the current duty credit scrips are trading at a loss which is making the industry less competitive globally. 

The Garment Exporters and Manufacturers’ Association has alleged that scrips given to garment exporters under the RoSCTL scheme are trading at a 20% discount, TNN reported. According to the GEMA, this is due to new conditions imposed on the scheme and the organisation expects this to cause losses of around Rs 1,500 crore for the garment export industry. 

“Scrips are trading at about 20% discount in the market,” said Assocham Gujarat state council chairman Chintan Thaker, TNN reported. “Since apparel makers are not importers, they cannot directly use the scrips and are selling them to importers. However, with the discount, exporters don’t get the full benefit of the incentives. Even though the scheme was introduced to aid exporters, they are unable to avail of its benefits.” 

The GEMA believes that losses currently being accumulated by garment exporters and the current conditions of the RoSCTL scheme are making Indian apparel businesses less competitive in the international export market. India competes with countries including Vietnam and Bangladesh to supply cheap clothing to markets including Europe and the US. 

“Local players will certainly lose export competitiveness because they are at a net loss of duty benefits,” said GEMA president Vijay Jindal. “This defeats the purpose and intent of the scheme promoting the government’s Make in India initiative and instead encourages import dependance.”