With the goods and service tax expected to roll out next month the rebate on the state levies (ROSL) scheme may be readjusted. Under the ROSL scheme, a rebate on state levies is provided such as value-added tax and central sales tax on inputs, including packaging, fuel, and electricity duty, accumulated through various stages of production, from yarn to finished garments. For exporters, the scheme offers enhanced duty drawback cover on inputs.

Already Rs 400 crores has been released under the scheme and around Rs 1,500 crores have been earmarked for the ongoing financial year.

The industry fears that with GST subsuming state taxes, the scheme could be withdrawn prematurely. Under the ROSL scheme, exporters get incentives worth around four per cent of the export value.

The ROSL scheme is an integral part of the Rs 6,000 crore special package announced by the Center last year to strengthen the textile and apparel sectors to improve its global competitiveness. It has set a target to generate an additional 30 billion dollars in exports and create a crore of jobs over a three-year period. The special package had helped apparel exports to record a 31 per cent growth in April over the previous year.