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Web Exclusive | August 2016

Rebate of State levies on garment export

The Union Ministry of Textiles has notified the rebate of State levies, which were not refunded earlier to the garment exporters, as announced in the special package for garment sector. The rebate shall be given under the Scheme for rebate of State levies on export of garments in 2016. The scheme will come into effect from September 20, 2016 and will remain in operation for a period of three years. 

For the scheme, the amount of rebate shall be calculated using the FOB value of the garment exported. The rates (including applicable caps) of rebate of the State levies on exports of garments manufactured in India shall be recommended by the Drawback Committee constituted by the Central Government and notified by the Ministry of Textiles. However, the rebate will not applicable for exports made under pre-existing Advance Authorisation Scheme. 

Further, the rate and rebate shall be applicable only to exporters who have constituted an Internal Complaints Committee (ICC) in pursuance of the sexual harassment of women at workplace (prevention, prohibition and redressal) Act, 2013.
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