IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 20 Sep 2016 | Removal date: 06 Mar 2019

Tax-based export incentive

A scheme called the Scheme for Rebate of State Levies on Export of Garments 2016 has been announced to provide a rebate of State Levies imposed on exports of garments. The Scheme will be applicable from 20 September 2016 for a period of 3 years. An official Notification was published by the Minsitry of Textiles on 12 August 2016 (No. 12020/03/2016-IT). The current Scheme was rescinded and a new Scheme with revised rates has been announced on 7 March 2019 (see related State Act).

The scheme aims to provide a rebate of the State Levies paid on exports of garments in addition to the rebate on Central Taxes that is provided by the Duty Drawback Scheme. The levies are understood to include State Value Added Taxes, Sales Tax on inputs, fuel, duty on electricity generation for the final product and the accumulated duty over the stages of production. According to the Press Release the tax rebate is expected to cost INR 5500 crore (USD 826.73 million)*.

The rebate rates notified will be calculated on Free on Board value of the exported goods.

Notification No.12020/03/2016-IT published on 13 August 2016 specifies the rebate rates for the exports of the said goods. Two rates have been specified, a lower rate if the fabric (including interlining) used in the production has been imported under the Special Advance Authorisation Scheme and a higher rate if not. The Advance Authorisation Scheme allows duty free imports of raw materials for manufacturing of export goods.

* INR to USD conversion as on 22 June 2016 - INR 67.50 / USD

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

282 Wearing apparel, except fur apparel
6101 Men's or boys' overcoats, carcoats, capes, cloaks, anoraks (including skijackets), windcheaters, windjackets and similar articles, knitted or crocheted, other than those of heading 61.03.
610120 Of cotton
610130 Of manmade fibres
6102 Women's or girls' overcoats, carcoats, capes, cloaks, anoraks (including skijackets), windcheaters, wind jackets and similar articles, knitted or crocheted, other than those of heading 61.04.
610220 Of cotton
610230 Of manmade fibres
6103 Men's or boys' suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimwear), knitted or crocheted.
610310 Suits
610322 Of cotton
610323 Of synthetic fibres
610329 Of other textile materials
610332 Of cotton
610333 Of synthetic fibres
610342 Of cotton
610343 Of synthetic fibres
610349 Of other textile materials
6104 Women's or girls' suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear), knitted or crocheted.
610413 Of synthetic fibres
610419 Of other textile materials
610422 Of cotton
610429 Of other textile materials
610432 Of cotton
610442 Of cotton
610443 Of synthetic fibres
610444 Of artificial fibres
610449 Of other textile materials
610452 Of cotton
610453 Of synthetic fibres
610459 Of other textile materials
610462 Of cotton
610463 Of synthetic fibres
610469 Of other textile materials
6105 Men's or boys' shirts, knitted or crocheted.
610510 Of cotton
610520 Of manmade fibres
610590 Of other textile materials
6106 Women's or girls' blouses, shirts and shirtblouses, knitted or crocheted.
610610 Of cotton
610620 Of manmade fibres
610690 Of other textile materials
6107 Men's or boys' underpants, briefs, nightshirts, pyjamas, bathrobes, dressing gowns and similar articles, knitted or crocheted.
610711 Of cotton
610712 Of manmade fibres
610719 Of other textile materials
610721 Of cotton
610729 Of other textile materials
610791 Of cotton
610799 Of other textile materials
6108 Women's or girls' slips, petticoats, briefs, panties, nightdresses, pyjamas, negligees, bathrobes, dressing gowns and similar articles, knitted or crocheted.
610821 Of cotton
610822 Of manmade fibres
610829 Of other textile materials
610831 Of cotton
610832 Of manmade fibres
610839 Of other textile materials
610891 Of cotton
610892 Of manmade fibres
6109 Tshirts, singlets and other vests, knitted or crocheted.
610910 Of cotton
610990 Of other textile materials
6110 Jerseys, pullovers, cardigans, waistcoats and similar articles, knitted or crocheted.
611011 Of wool
611020 Of cotton
611030 Of manmade fibres
611090 Of other textile materials
6111 Babies' garments and clothing accessories, knitted or crocheted.
611120 Of cotton
611130 Of synthetic fibres
611190 Of other textile materials
6112 Track suits, ski suits and swimwear, knitted or crocheted.
611211 Of cotton
611241 Of synthetic fibres
6113 Garments, made up of knitted or crocheted fabrics of heading 59.03, 59.06 or 59.07.
611300 Garments, made up of knitted or crocheted fabrics of heading 59.03, 59.06 or 59.07.
6114 Other garments, knitted or crocheted.
611420 Of cotton
611430 Of manmade fibres
611490 Of other textile materials
6115 Panty hose, tights, stockings, socks and other hosiery, including graduated compression hosiery (for example, stockings for varicose veins) and footwear without applied soles, knitted or crocheted.
611595 Of cotton
611596 Of synthetic fibres
611599 Of other textile materials
6116 Gloves, mittens and mitts, knitted or crocheted.
611610 Impregnated, coated or covered with plastics or rubber
611692 Of cotton
611693 Of synthetic fibres
6117 Other made up clothing accessories, knitted or crocheted; knitted or crocheted parts of garments or of clothing accessories.
611710 Shawls, scarves, mufflers, mantillas, veils and the like
611780 Other accessories
6201 Men's or boys' overcoats, carcoats, capes, cloaks, anoraks (including skijackets), windcheaters, windjackets and similar articles, other than those of heading 62.03.
620111 Of wool or fine animal hair
620112 Of cotton
620119 Of other textile materials
620191 Of wool or fine animal hair
620192 Of cotton
620193 Of manmade fibres
6202 Women's or girls' overcoats, carcoats, capes, cloaks, anoraks (including skijackets), windcheaters, windjackets and similar articles, other than those of heading 62.04.
620211 Of wool or fine animal hair
620212 Of cotton
620213 Of manmade fibres
620292 Of cotton
620293 Of manmade fibres
620299 Of other textile materials
6203 Men's or boys' suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimwear).
620311 Of wool or fine animal hair
620312 Of synthetic fibres
620319 Of other textile materials
620331 Of wool or fine animal hair
620332 Of cotton
620333 Of synthetic fibres
620339 Of other textile materials
620341 Of wool or fine animal hair
620342 Of cotton
620343 Of synthetic fibres
620349 Of other textile materials
6204 Women's or girls' suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear).
620412 Of cotton
620413 Of synthetic fibres
620419 Of other textile materials
620423 Of synthetic fibres
620429 Of other textile materials
620432 Of cotton
620433 Of synthetic fibres
620439 Of other textile materials
620442 Of cotton
620443 Of synthetic fibres
620444 Of artificial fibres
620449 Of other textile materials
620452 Of cotton
620453 Of synthetic fibres
620459 Of other textile materials
620462 Of cotton
620463 Of synthetic fibres
620469 Of other textile materials
6205 Men's or boys' shirts.
620520 Of cotton
620530 Of manmade fibres
620590 Of other textile materials
6206 Women's or girls' blouses, shirts and shirtblouses.
620610 Of silk or silk waste
620630 Of cotton
620640 Of manmade fibres
620690 Of other textile materials
6207 Men's or boys' singlets and other vests, underpants, briefs, nightshirts, pyjamas, bathrobes, dressing gowns and similar articles.
620711 Of cotton
620719 Of other textile materials
620721 Of cotton
620791 Of cotton
6208 Women's or girls' singlets and other vests, slips, petticoats, briefs, panties, nightdresses, pyjamas, negligees, bathrobes, dressing gowns and similar articles.
620819 Of other textile materials
620821 Of cotton
620822 Of manmade fibres
620829 Of other textile materials
620891 Of cotton
620892 Of manmade fibres
620899 Of other textile materials
6209 Babies' garments and clothing accessories.
620920 Of cotton
620930 Of synthetic fibres
620990 Of other textile materials
6210 Garments, made up of fabrics of heading 56.02, 56.03, 59.03, 59.06 or 59.07.
621010 Of fabrics of heading 56.02 or 56.03
621040 Other men's or boys' garments
621050 Other women's or girls' garments
6211 Track suits, ski suits and swimwear; other garments.
621132 Of cotton
621133 Of manmade fibres
621139 Of other textile materials
621142 Of cotton
621143 Of manmade fibres
621149 Of other textile materials
6212 Brassieres, girdles, corsets, braces, suspenders, garters and similar articles and parts thereof, whether or not knitted or crocheted.
621210 Brassieres
621230 Corselettes
621290 Other
6213 Handkerchiefs.
621320 Of cotton
6214 Shawls, scarves, mufflers, mantillas, veils and the like.
621410 Of silk or silk waste
621420 Of wool or fine animal hair
621430 Of synthetic fibres
621440 Of artificial fibres
621490 Of other textile materials
6216 Gloves, mittens and mitts.
621600 Gloves, mittens and mitts.
6217 Other made up clothing accessories; parts of garments or of clothing accessories, other than those of heading 62.12.
621710 Accessories
621790 Parts

Please report this page in case you detect an inaccuracy in its content.