Ministry of Textiles provides additional Ad-Hoc Incentive to Apparel and Made-up

Jan 16, 2020 | by Avantis RegTech Legal Research Team

Industry Specific Compliance

The Ministry of Textiles on January 14, 2020, provides a special one-time additional ad-hoc incentive of upto 1% of FoB value for exports of apparel and made-ups to offset the difference between Rebate of State and Central Taxes and Levies (RoSCTL) and RoSL + [email protected]%, from March 7, 2019 to December 31, 2019, on the recommendation of Expenditure Finance Committee (EFC).

Further, the recommendations of the EFC are as follows:

a)    The additional incentive under the scheme would be as per claims from the exporters and the total adhoc incentive would not exceed Rs. 600 crore for the period mentioned above.

b)     Under the scheme, incentive of upto 1% of FOB value for each line in a shipping bill will be provided for those exports of apparel and made-ups which may receive lesser benefits under RoSCTL as against RoSL+ MEIS.

c)    Merchandise Export from India Scheme (MEIS) stands withdrawn from March 07, 2019. Claims already paid to the exporters under MEIS will be suitably adjusted against RoSCTL and recoveries made wherever due.

d)      The ad-hoc incentive would be implemented in the form of scrips for which an outlay would need to be provided by Department of Revenue.

[Notification F. No. 14/26/2016-IT/VOl. II]


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