India: Rebate of taxes and levies on apparel exports

Revised guidelines for continuation and implementation of the rebate system

Revised guidelines for continuation and implementation of the rebate system

The Union Cabinet approved the continuation of a system for rebates of state taxes and levies on exports of apparel and garments (Chapters 61 and 62) and made-ups (Chapter 63) until 31 March 2024.

In this regard, the Ministry of Textiles issued revised guidelines for continuation and implementation of the rebate system, with the revised guidelines concerning the following:

  • Duration—Continued through 31 March 2024 for apparel and garments and made-ups.
  • Nature of rebate—In the form of duty credit scrips issued electronically on the custom system, that can be used for paying basic customs duty on import of goods and is freely transferrable.
  • Rates and restrictions—Existing rates and caps apply.
  • Claim for rebate—Duty credit scrips to be issued without realization of export proceeds, but exporters required to maintain records to substantiate the claims.
  • Recovery of over-claims or misdeclarations—A rebate will be allowed subject to the receipt of sale proceeds within the time allowed. Exporters will be required to return any over-payment of rebate issued through the duty credit scrips arising from miscalculation at a rate of 15% per annum.

Read an August 2021 report [PDF 274 KB] prepared by the KPMG member firm in India



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