Wait...
Search Global Export Import Trade Data
Recent Searches: No Recent Searches

Garment exporters face potential loss of Rs 1,200 crore.


Date: 23-06-2022
Subject: Garment exporters face potential loss of Rs 1,200 crore
Garment exporters are staring at a potential loss of Rs 1,200 crore due to the new conditions imposed in the Rebate of State and Central Taxes and Levies (RoSCTL) scheme.

The scheme offers rebate against the taxes and levies already paid by exporters on the inputs. Now, this rebate has been converted into scrips that are tradeable. Exporters can sell the scrips to importers, who in turn can use the instrument as an alternative to cash to pay import duty. The scrips trade at a discount, which has now gone up to 20% from 3% in December, industry insiders said, putting pressure on the margins of garment exporters at a time when they are facing challenges on account of rising cotton prices.

“This discounting of scrips benefits importers, who are taking undue advantage at the cost of exporters,” said Vijay Jindal, a member of the Apparel Export Promotion Council (AEPC) and president of the Garment Exporters & Manufacturers Association (GEMA).

Garment exports at $16 billion contribute 36% to the country's annual textile exports of $44 billion. According to estimates, reimbursement under the RoSCTL scheme is equal to around 5% of the apparel exports, or roughly Rs 6,000 crore. At a broad level, a discount of 20% on this would mean a direct hit of around Rs 1,200 crore for the exporters.

“The textile industry wants the government to restart cash reimbursement instead of these tradeable scrips, as these scrips are trading at a 20% discount,” Jindal said. “This is resulting in a substantial cash transfer from exporters to importers and is helping the importers.”

Even though the scheme was launched with the intention of making India’s textile industry competitive and bolstering exports, because of the discount in the market, it is acting against the government’s intention of helping the exporters and is instead benefitting importers, they said. It also defeats the purpose of the government’s stated policy of ‘Make in India’ for the world, they added.

“At present, demand for such scrips is very less as exporters are finding it difficult to find enough importers who can buy the scrips,” said Harish Ahuja, an executive member of the AEPC and management committee member of the GEMA.


Source Name:-Economic Times


Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 12-08-2022
Notification No. 68/2022-CUSTOMS (N.T.)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver- Reg.

Date: 08-08-2022
Notification No. 67/2022 Customs (N.T.)
Passenger Name Record Information Regulations, 2022.

Date: 04-08-2022
Notification No. 66/2022 - Customs (N.T.)
Exchange rate Notification No.66/2022-Cus (NT) dated 04.08.2022-reg.

Date: 03-08-2022
Circular No. 179/11/2022-GST
Clarification regarding GST rates & classification (goods) based on the recommendations of the GST Council in its 47th meeting held on 28th – 29th June, 2022 at Chandigarh

Date: 03-08-2022
Notification No. 24/2022-Customs (ADD)
seeks to impose anti-dumping duty on Opal Glassware from UAE & China PR for a period of 5 years.

Date: 02-08-2022
Notification No. 22/2022-Central Excise
Seeks to amend No. 18/2022-Central Excise, dated the 19th July, 2022 to increase the Special Additional Excise Duty on production of Petroleum Crude and exempt export of Aviation Turbine Fuel.

Date: 02-08-2022
Notification No. 21/2022-Central Excise
Seeks to further amend No. 04/2022-Central Excise, dated the 30th June, 2022, to reduce the Special Additional Excise Duty on Diesel.

Date: 01-08-2022
NOTIFICATION No. 17/2022 – Central Tax
Seeks to implement e-invoicing for the taxpayers having aggregate turnover exceeding Rs. 10 Cr from 01st October, 2022.

Date: 29-07-2022
Notification No. 65/2022-CUSTOMS (N.T.)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver- Reg.

Date: 23-07-2022
Notification No. 44/2022-Customs
Seeks to amend notification No. 49/2021 - Customs, dated 13.10.2021, in order to extend the concessional Agriculture Infrastructure and Development Cess [AIDC] of Nil on Lentils (Mosur) up to and inclusive of the 31st March, 2023.



Exim Guru Copyright © 1999-2022 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001