refund of state levies for apparel

[satbir singhwahi]

Sir

For apparel exporters the govt. has issued ROSL (rebate of state levies ) in the form of additional drawback from 20.09.2016.

My query is whether garments purchased against H form , the ROSL dbk can be claimed .

[Ganeshan Kalyani]

The relevant para from Circular 43/2016 dated 31.08.2016 is reproduced below for reference:

5. In ROSL scheme, the rebate of State levies is understood to comprise State VAT/CST on inputs including packaging, fuel, duty on electricity generation and duties and charges on purchase of grid power, as accumulated through the stages ofproduction from yarn to finished garments.

in case of purchase against Form H, the state levies of VAT/ CST is Nil so there is no levy to claim rebate. Other levies as mentioned in above provision should be looked into.

AI Summary

Apparel Exporters Can't Claim Rebate of State Levies on Garments Purchased with Form H Due to Nil VAT/CST. A query was raised regarding the eligibility to claim the Rebate of State Levies (ROSL) for apparel exporters who purchase garments against Form H. The response clarified that under the ROSL scheme, the rebate covers state levies such as VAT/CST on inputs. However, when garments are purchased against Form H, the VAT/CST is nil, thus eliminating the possibility of claiming a rebate for these specific levies. Other applicable levies mentioned in Circular 43/2016 should be considered for rebate eligibility.