AEPC has asked the Ministry of Finance for the restoration of the previous rate of ROSL at 3.9 per cent and revocation of the requirement of certificates for claiming the duty drawback. The Council has also requested that for GST on job work and stock transfer, where drawback is not available, the facility of ITC credit should be allowed for those availing the drawback route. Earlier the Ministry of Textiles through a notification issued on 27 June, 2017 had notified the interim ROSL scheme at 0.39 per cent and through another notification dated 30th June, 2017 had made it compulsory that the exporters have to give a declaration and certificates in a prescribed format at the time of export for claiming the duty drawback.

In a letter written to GK Pillai, Chairman of the Drawback Committee of Ministry of Finance, AEPC Chairman, Ashok G Rajani has stated that the declaration and certificates will increase the compliance burden on exporters as well as transition cost considering the fact that GST has been rolled out only a few days back and the offices are not ready for providing any additional certificates. Talking about the issue, Ashok G Rajani, Chairman Apparel Export Promotion Council said, “The Government has continued the interim duty drawback under GST regime for 3 months i.e. up to 30th September, 2017 which is indeed a welcome step. However the interim ROSL rate which has been notified at 0.39 per cent- a sharp reduction of 90 per cent from the previous rate of 3.9 per cent- is not acceptable to us. Similarly Industry is not in a position to provide certificates for claiming the duty drawback as GST has been rolled out only 4 days back and the offices are not in a position to provide any additional certificates.”

On the issue of GST on job work and stock transfers, Rajani said, “Earlier the industry was not subjected to any tax on Job work and stock transfers. These new cost does not get captured in the drawback route allowed in the transition period. We have suggested for inclusion of tax incidence on job work and stock transfers under the GST regime in the drawback provisions during the transition period.” AEPC has been at the forefront in demanding the continuation of ROSL and duty drawback under GST regime. However the interim ROSL rate of 0.39 per cent will adversely affect the apparel exports. The Association wants the government to look at the issues raised by it which would provide temporary relief to exporters and enable them to retain their competiveness in world markets.