On exports of readymade garments and made-ups, the post-GST rates that will be used for taking rebate of state taxes and will come under Remission of State Levies (RoSL) and they have been communicated to boost garment exports.
Under an export promotion scheme, the government also has increased the incentive rate to 4%- MEIS for readymade garments and made-ups.
To boost the exports of garments and made-ups, the Union Textiles Minister Smriti Irani told that the Enhanced Merchandise Exports from India Scheme (MEIS) rates and also the post-GST rates for taking rebate from state levies/taxes will help. From 1 Oct 2017, Announcement on post-GST rates of RoSL will be effective“ Irani Tweeted. Exports of garments & made-ups will boost by Post-GST rates for the remission of state levies/taxes.
Christmas orders will be fulfilled by the blocked capital which will release from the increased MEIS rates, said by the AEPC which is a Garment exporters’ body. a statement released by the textiles ministry in which post-GST rates of RoSL were told to be maximum 1.70% for cotton garments, 1.25 %for man-made fibres ( MMF), silk and woollen garments and 1.48% for blended apparels. To boost exports and also to generate more employment in textiles and apparel sector, the ministry said the notification of post-GST RoSL rates for a rebate of state levies/taxes will help. Under MEIS, the rate for garments has increased and made-ups to 4% of the value of exports from the earlier 2% and is in effect from November 1.
Under the MEIS scheme, the government gives duty benefits to many products. Depending on the product and country where it is exported, the duty benefits are given at 2%, 3% and 5%. Under MEIS the incentive rates for readymade garments and made-ups have been increased to 4% of the value of exports from November 1 till June 30 next year, said by DGFT. For 2017-18, the annual incentives are being estimated to Rs 1,143.15 crore and for 2018-19, Rs 685.89 crore as per the commerce ministry.
To increase the competitiveness of the industry in the global market, the exporters also want the government to restore the duty drawback rates. In October 2017, the ready-made garment exports fell by almost 40% to USD 829.44 million.