Exporters of garments and made-ups like bed sheets and towels will continue to get rebate on certain state levies for three more months like pre GST regime. Garment and made-ups exporters can claim Remission of State Levies (RoSL) at the rates prior to the introduction of GST till September 30. The scheme aims at making exports competitive in the international market as exporters of made-ups get incentives of 3.9 per cent of the value of exported goods.

The government in June had slashed rates under the RoSL scheme on export of garments and textile made-up articles to 0.39 per cent to be effective from July 1st causing a furor in the two sectors. However, this announcement will allow exporters the old incentive till September 30. The special scheme for remission of state levies for three years was part of the Rs 6 000 crores package that the government had approved in June last year for employment generation and promotion of exports in the textile and apparel sector.

While there would be input tax credits under GST, there are many costs that are being taken care of under the various duty drawback schemes. There are many hidden costs as well. Unless they are addressed under GST, India would lose out to neighboring countries, particularly while exporting to the European Union.