RoSL on garments exports to continue at pre-GST rates for 3 months

The rates of RoSL shall be applied by EDI System at the time of scroll generation.

The Dollar Business Bureau 

The Finance Ministry on Wednesday notified the continuation of pre-GST rates of Rebate of State Levies (RoSL) on the export of garments and textile made-up articles for the transition period of three months after the implementation of the new tax regime.

“It is to bring to your notice that Ministry of Textiles has issued notification no. 12020/3/2016-IT (Pt.) dated July 31, 2017 restoring the pre-GST RoSL rates that were revised downwards with effect from July 1, 2017. This has been made effective for a transition period of three months i.e. July 1 to September 30, Central Board of Excise and Customs (CBEC) in its circular (no.34/2017-CUS).

Earlier, post-GST, the CBEC in a notification (no.14/26/2016-IT) dated June 27, had revised the rates to 0.39% for RoSL and 0.23% for RoSL under Advance Authorization-All Industry Rates (AA-AIR) combination, respectively. These revised rates on garment and textile made-up exports under ROSL are applicable to exports with Let Export Order dates from July 1 onwards.

“For all exports with let export order dates on or after July 1 for which RoSL is claimed, exporter has to submit the undertaking in the revised format that has been suitably included in the EDI shipping bill with effect from August 5,” the notification said.

Exports that have been made within the period 1.7.2017 to 4.8.2017, for which the revised undertaking is not possible, then the exporter has to furnish  electronically the shipping bills and submit an undertaking to the Customs in the manual format, the notification detailed.

“This could be a single undertaking covering export products in the various shipping bills of the exporter. The revised undertaking shall be irrespective of declaration/ undertaking, if any, given earlier,” it added.

As per the discussions held with the Textiles Ministry, Export Promotion Councils shall assist the exporters in filing such undertaking.

The officer/s sanctioning the RoSL should ensure that the amount is paid upon such undertaking being submitted by an exporter. The exporters may also be suitably advised by the Customs to file their undertaking at the earliest for this period, the circular stated.

It may be noted that the rates of RoSL as notified by the Textiles Ministry shall be applied by EDI System at the time of scroll generation for RoSL. Thus irrespective of the RoSL amount appearing in Shipping Bills, exporter will be eligible for RoSL amount as per rates notified by the Ministry, it said.

No separate claim is required to be filed by the exporter.

With an aim to boost India’s garment exports thereby facilitating augmenting of investment and creation of more employment in the garment sector, the Government has introduced the RoSL Scheme that came into operation on September 20 2016 for a period of three years.

In ROSL, an optional scheme, an exporter can claim for rebate on drawback exports.