The Synthetic & Rayon Textiles Export Promotion Council

Inputs on State Levies/duties not adjusted under GST

Ref: MR/Circular/1519                                                26th September, 2017

To: The Members of the Council

Dear Sir,

Sub: Inputs on State Levies/duties not adjusted under GST

As you are already aware and must have started availing rebates on the state levies being paid while manufacturing the exportable textiles, through the newly introduced Rebate of State Levies (ROSL) Scheme.

The ROSL Scheme currently rebates the state levies such as state VAT/CST on inputs including packaging, fuel, duty on electricity generation and duties and charges on purchase of grid power.  This Scheme is available only for Garments and Made ups at present.  

It may be pointed out that with implementation of the Goods and Services Tax (GST); Government has reduced the ROSL rates because credit of SGST will be available to the exporters.

However, it has been found that there are still various duties and taxes not adjusted (with GST) such as transmission charges, electricity duty, cross subsidy on electricity bills, taxes on fuel/ petroleum/ diesel, water cess, green tax, local body taxes, road taxes, labour cess, etc. which need to be included in the ROSL Scheme as these duties and taxes are presently loaded on the cost of yarn and have become part of the textile value chain.

In this context, the Council is preparing a strong representation to the Ministry of Finance and Ministry of Textiles, Government of India based on the authentic data to be received from the member – exporters in the Proforma 1 (download).

Therefore, the Council requests its member - exporters to kindly send the required data as per the Proforma 1 (download) and send the same to the Council (mr@srtepc.in) as early as possible to help submit the proposed representation on behalf of the industry, latest by Thursday 5th October, 2017.  

Thanking you.

Yours faithfully

 

K. Baruah
Joint Director

Encl: Proforma 1 (download)