NEW DELHI: The Ministry of Textiles has issued a notification extending the Scheme of Rebate of State and Central Taxes and Levies on Export of Garments and Made-ups (RoSCTL) which was in force up to March 31, 2020.

The RoSCTL scheme provides rebate on all embedded taxes on exports.

“The Government has decided to continue the said Scheme w.e.f. April 01, 2020 until such time that the RoSCTL Scheme is merged with Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme without any change in Scheme guidelines and rates as notified (earlier),” said the notification.

Under the RoSCTL scheme, maximum rate of rebate for apparel is 6.05 per cent, while for made-ups, this goes up to 8.2 per cent. The made-ups segment comprises home textiles products such as bed linen, curtains, pillows and carpets.

Last month, the Union Cabinet had taken a decision regarding continuation of RoSCTL.

While extending the scheme, the government had said the continuation of the RoSCTL scheme beyond March 31, 2020, is expected to make the textile sector competitive by rebating all taxes/levies which are currently not being rebated under any other mechanism.

Exporters get rebate of state taxes and levies like VAT on fuel used in transportation, and embedded State Goods and Services Tax (SGST) paid on inputs such as pesticides and fertilisers.

Central taxes and levies on which rebate is given include, central excise duty on fuel used in transportation, embedded CGST paid on inputs and embedded CGST and Compensation Cess on coal used in production of electricity.

An exporter opting for the scheme makes claim for rebate on exports at itemlevel.

Meanwhile, the textiles ministry has also decided to ease norms under Amended Technology Upgradation Fund Scheme (ATUFS) during post lockdown period of the COVID-19 outbreak.

The government provides credit linked capital investment subsidy with aim of ‘Make in India’ and ‘Zero Defect and Zero Eect’ in manufacturing.

Under ATUFS, capital investment subsidy (CIS) is provided to various segments of the textiles sector, including garmenting and technical textiles.

Garmenting and technical textiles segments can get 15 per cent CIS, subject to an upper limit of Rs 30 crore.