The government has doubled the incentives for export of ready-made garments and made-ups to 4 per cent from the existing 2 per cent in a move to encourage labour-intensive segments of the textile sector.
The Directorate General of Foreign Trade (DGFT) on Friday announced that incentives under the Merchandise Exports from India Scheme (MEIS) for two subsectors of the textiles industry, ie, readymade garments and made-ups have been enhanced from two per cent to four per cent of the value of exports with effect from 1 November 2017 till 30 June 2018.
The estimated annual value of the incentives works out to Rs1,143.15 crore for 2017-18 and Rs685.89 crore for 2018-19. The measure will incentivise exports of labour intensive sectors of readymade garments and made-ups and contribute to employment generation, a commerce ministry release stated.
Meanwhile, the textile ministry also on Friday notified the post-GST rates under the scheme for Remission of State Levies (RoSL) on exports of readymade garments, made-ups and under Advance Authorisation-RoSL for garments to boost exports and employment generation in the labour intensive textiles and apparel sector
Post-GST rates of RoSL are up to a maximum of 1.70 per cenrt for cotton garments, 1.25 per cent for MMF, silk and woolen garments and 1.48 per cent for apparel of blends. Rates are up to a maximum of 2.20 per cent for cotton made-ups, 1.40 per cent for MMF and silk made-ups and 1.80 per cent for made-ups of blends
For sacks and bags made of jute, the rate is 0.60 per cent. The RoSL rate for garments under AA-AIR combination is 0.66 per cent.