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Published
Jul 15, 2021
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Government extends central, state tax rebate scheme for garment exporters until 2024

Published
Jul 15, 2021

The Union Government has approved the extension of the Rebate of State and Central Taxes and Levies scheme until March 2024, bringing tax relief to garment exporters.

Garment exporters will continue to get central and state tax rebates until March 2024


As per the government’s decision on Wednesday, businesses exporting ready-made garments and made-ups will continue to receive tax rebates for both central and state taxes on their outward shipments. The government extended the RoSCTL scheme for the remainder of the 2022 financial year the 2023 financial year, and the 2024 financial year, the Telegraph India reported. 
 
“The Union cabinet chaired by Prime Minister Narendra Modi has given its approval for the continuation of Rebate of State and Central Taxes and Levies with the same rates as notified by the ministry of textiles for the export of apparel/garments and made-ups,” Minister of Information and Broadcasting Anurag Thakur told a group of reporters on July 14. 

The RoSCTL scheme issues exporters with a duty credit scrip for the value of the embedded taxes and levies contained within the exported product. Exporters can then use the scrip to pay for things such as import duty on equipment or machinery among other things. The scrips are also tradable and can be given by one importer to another. 
 
The Ministry of Textiles has fixed the maximum rebate rate for apparel at 6.05% and for made-ups, including bed linens, curtains, and pillows, at 8.2%. The government has also announced a shipping subsidy scheme worth Rs 1,624 crore ($244.11 million) which will be used to subsidise Indian shipping companies over the next five years to boost trade. 

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