The Indian government has withdrawn Merchandise Exports from India Scheme (MEIS) retrospectively from March 7, 2019 for HSN code chapters 61, 62 and 63. Claims already paid to the exporters under MEIS will be suitably adjusted against Rebate of State and Central Taxes and Levies (RoSCTL) and recoveries will be made wherever due, an official notification said.

As per the recommendations of the Expenditure Finance Committee (EFC), a special one-time additional ad-hoc incentive of upto 1 per cent of FoB value will be provided for exports of apparel and made-ups to offset the difference between RoSCTL and RoSL + MEIS at the rate of 4 per cent, from March 7, 2019 to December 31, 2019, the ministry of textiles notification said.

The EFC has recommended that the additional incentive under the scheme would be as per claims from the exporters and the total adhoc incentive would not exceed ₹ 600 crore for the period mentioned above.

Under the scheme, incentive of upto 1 per cent of FOB value for each line in a shipping bill will be provided for those exports of apparel and made-ups which may receive lesser benefits under RoSCTL as against RoSL+ MEIS.

The department of commerce will take steps for the validation of claims by the Directorate General of Foreign Trade (DGFT) and department of revenue (DoR) for correct disbursal of benefits.

The ad-hoc incentive would be implemented in the form of scrips for which an outlay would need to be provided by DoR.

Published On : 17-01-2020

Source : Fibre 2 Fashion