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

Rebate of State Levies: purchases under Form H lack VAT/CST component, so that rebate element cannot be claimed. ROSL functions as an additional drawback covering state VAT/CST on inputs, fuel, duties on electricity generation and duties/charges on purchase of grid power accumulated through production stages. Purchases against Form H have nil VAT/CST, so the VAT/CST element of ROSL cannot be claimed; other levy components such as fuel and electricity duties may still be examined for rebate eligibility.