GoI: Rebate of State and Central Taxes Scheme in the form of Scrips

On May 1, 2020, the Government of India announced that the Rebate of State and Central Scheme arrears are to be provided in the form of scrips. It is to be provided by the Department of Revenue Communication.

Highlights

The ROSL scheme was discontinued in March 2019. The scheme was replaced with Rebate of State and Central Taxes and Levies Scheme. The arrears to be provided in the form of scrips is to benefit many of the cotton textile exporters.

What is a scrip?

Scrip is a certificate that is subscribed to a bank or an individual entitling the holder a part of dividend or an amount of money.

ROSL scheme

The scheme supported apparels and made ups. The state and central taxes continue to be present in the cost of exports. The scheme rebates state and central taxes. This will include more than 56% of India’s textile export basket. The aim is to make the textile sector competitive.

Cotton Export

Cotton fabrics and yarn account to 23% of total textiles and apparel exports in India. In 2018-19, the total cotton production was 28.7 million bales. In the same year, the cotton clothing exports were 36.62 billion USD. India exports cotton and cotton products mainly to UAE, US, UK, France.

USA is the major exporter of cotton in the world.

Month: Current Affairs - May, 2020