AEPC proposes higher ROSL rate for embedded taxes and other State Levies not subsumed in the GST
New Delhi, July 23, 2017: AEPC has proposed to the Ministry of Finance for the continuation of Rebate of State Levies (RoSL) Scheme post GST implementation and inclusion of other state levies not subsumed in the GST. The Council has also requested for a drawback for central taxes outside the GST purview besides full accumulated input GST Tax Credit.
In a presentation made before the drawback committee, AEPC apprised the committee about the instance of embedded blocked taxes which the Industry is facing in central taxes. The committee was also apprised about the new levies like intra company stock transfers, GST on job work, etc. which has been imposed in the GST regime but not being factored in earlier announced drawback rates, will lead to cost escalation, especially in the transitionary phase.
Commenting on AEPC's presentation to the drawback committee, Mr. Ashok G Rajani, Chairman Apparel Export Promotion Council said, “Garment Industry welcomes GST as a move to unify the national economy, but this should not be at the cost of the growth of the apparel sector. For the vast number of SMEs in this sector, for whom this whole taxation system and procedures are new, a longer transitionary phase would have helped. I hope that the government keeps a sympathetic view towards the demands of the Industry. The GST has diluted most of the FTP benefits that the industry was availing so far besides putting a huge pressure on the working capital. It is now important that all the taxes - direct and indirect are reimbursed under the drawback and ROSL benefits. "
In its submission to the drawback committee, AEPC has also made a request for exempting samples from GST to buying agents / buyers within India or abroad as sending samples to buying agents / buyers within India is a prerequisite for getting business.
About Apparel Export Promotion Council (AEPC)
Incorporated in 1978, AEPC is the official body of apparel exporters in India that provides invaluable assistance to Indian exporters as well as importers/ international buyers who choose India as their preferred sourcing destination for garments. In recent years AEPC has worked tirelessly in integrating the entire industry - starting at the grass root level of training the workforce and supplying a steady stream of man power to the industry; identifying the best countries to source machinery and other infrastructure and brokering several path breaking deals for its members and finally helping exporters to showcase their best at home fairs as well as be highly visible at international fairs the world over. With AEPC's expertise and all the advantages that India has, it makes for a truly win-win situation - Indian exporters grow stronger each year in their achievements, skills and proficiency, while international buyers get superior solutions for their garment imports.
Web site: http://www.aepcindia.com/
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