The Rebate of State Levies (ROSL) Scheme, which was announced in the month of December, 2016, came into effect from March this year for the made-ups sector. It is expected that the scheme will create additional employment opportunities in the entire value chain such as spinning and weaving with the extended support of Textiles Ministry, especially in the rural areas for women.
The ROSL Scheme was released for a predefined period of three years, with the objective 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 congregated through the stages of production from yarn to finished made-ups.
After the announcement of the Scheme, many leading made-ups manufacturing companies are reportedly drawing up plans for investments in this sector, which will ultimately increase the exports of made-ups articles.
Ujwal R. Lahoti, Chairman, TEXPROCIL, confidently said, “Exports of made-ups will grow as a result of the ROSL Scheme. The results will be visible in the span of six months.”
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He also urged the Ministry to continue with ROSL Scheme for three years as committed even under the GST regime, as there are still many state taxes which are not subsumed under the GST.
It is worth mentioning here that earlier also the Textiles Ministry had declared a package including the ROSL Scheme for the garments sector in July 2016, which has increased the exports of the sector to US $ 13.47 this year as against US $ 12.37 billion in the prior year.
