Govt rolls out 1% additional ad-hoc incentive for garments and made-ups

As RoSL and MEIS were simultaneously available along with RoSCTL, many exporters factored in both in their costing. Exporters said the government had at no point issued any notification on this.

The government has introduced a scheme for additional ad-hoc incentive of 1 per cent of free on board (FOB) value for garments and made-ups. This comes at a time when benefits under the Merchandise Exports from India Scheme (MEIS) for exports of such items were withdrawn.

Exporters said the incentive would be added if rebate of state and central taxes and levies scheme (RoSCTL) is less than remission of state levies (RoSL) plus MEIS. 

The government issued the notification for the incentive in mid-January, and has now issued the guidelines. This is mainly to compensate for the loss, if any,