Apparel exporters seek continuation of ROSL under GST regime

Apparel exporters' body AEPC today demanded the rebate on state levies scheme for the sector should be continued under the GST regime, arguing that it gave a boost to exports.
The Apparel Exports Promotion Council (AEPC) said it has made a presentation to Finance Minister Arun Jaitley last week to continue ROSL in the current form post the roll out of the Goods and Services Tax.
The GST is expected to be rolled out from July 1.
India's apparel exports grew 31.7 per cent in April as against the same month last year.
"The data of the apparel exports shows that after the commencement of disbursement of ROSL, the apparel sector has been registering double digit growth," AEPC said.

During March-April 2017, Indian garment exporters were able to increase production by around 30 per cent and employed at least 5 per cent more workers during the same period.

The revenue department began operationalising the Rs 5,500-crore ROSL scheme from September 20 last year, under which exporters are compensated for state levies. The Cabinet had cleared Rebate of State Levies (ROSL) on exports of garments to refund the state levies which are not given so far.
Union Textiles Minister Smriti Irani earlier informed that funds to the tune of over Rs 1,900 crore have been given to the apparel industry under the rebate of state levies to boost exports from the sector.

"The big jump in apparel exports is the result of recently implemented incentive called ROSL on export of garments, as it helped the industry increase the production at very competitive rates for a larger share of global markets. It is important that ROSL is continued even in GST era to ensure sustained growth momentum," AEPC Chairman Ashok G Rajani said.
With GST to be operational from July 1 2017, any dilution in the ROSL scheme will hit the apparel export sector badly, impacting the job growth, the apparel exporters body said.