The Cotton Textiles Export Promotion Council (Texprocil) has urged the government to continue with the Rebate of State Levies (ROSL) scheme for three years as committed even under the GST regime as there are still many state taxes/levies which are not subsumed under the GST.

The ROSL scheme was announced in December 2016 for the made-ups sector for three years.

The ROSL rates were announced and were made effective from March 23, 2017. The objective of the scheme is to provide rebate of state levies consisting of state VAT/CST on inputs including packaging, fuel, duty on electricity generation and duties and charges on purchase of grid power, as accumulated through the stages of production from yarn to finished made-ups.

Many leading companies manufacturing made-ups are reportedly drawing up plans for investments in this sector after the scheme has been announced.

The ROSL scheme is expected to lead to an increase in exports of made-ups articles which in turn will create more employment.

Texprocil says any increase in the exports of made-ups will create additional employment in the entire value chain such as spinning and weaving besides the made-ups sector especially in the rural areas and for women.

After the package was announced, between July 2016 and March 2017 garment exports increased to 13.47 billion dollars as against 12.37 billion dollars during the same period the preceding year.