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ASSOCHAM seeks review of GST rates for specific agriculture inputs

 

Wednesday, July 12, 2017

Higher GST on bio-fertilisers, organic manures to directly promote chemical usage & impact public health

 

New Delhi, July 12, 2017: Apex industry body ASSOCHAM has urged the union government to review GST (Goods and Services Tax) rates for select agriculture inputs viz., bio fertilizers, bio pesticides/bio control agents (BCA), organic manures/vermicompost/farmyard manure (FYM) and others.
 
“Higher GST in this segment will directly promote chemical usage thereby leading to increase in green house gas emissions, besides it will also adversely impact public health,” highlighted ASSOCHAM in a communication addressed to the union finance minister (FM), Mr Arun Jaitley.
 
It also noted that such a taxation policy on these segments will directly contradict efforts being made by Prime Minister Narendra Modi in promoting variety of schemes and projects such as Swachh Bharat, Soil Health Card, Namami Gange and various organic missions.
 
“The GST Council has recommended far higher tax rates to certain specific manufactured products that are exempted in several states like West Bengal, Sikkim, Uttarakhand and other or attract the basic five per cent VAT (Value Added Tax) charges in majority of states,” said ASSOCHAM secretary general, Mr D.S. Rawat.
 
Highlighting the importance of bio-fertilizers, the chamber in its representation said that they are manufactured primarily by micro, small and medium enterprises (MSMEs) and also provide farmers an option towards sustainable agriculture practices like organic farming.
 
Besides, bio-fertilizers are highly beneficial as they are alternate solutions to farmers from use of chemical fertilizers that tends to spoil both soil and environment.
 
“While the bio-fertilizers have so far been left out of tax ambit by majority of states including West Bengal, even the NABARD (National Bank for Agriculture and Rural Development) provides additional support to this sector in form of 50 per cent subsidy for setting up such units,” said Mr Rawat.
 
Just like bio-fertilizers, the bio-pesticides/bio-control agents are also used extensively for organic farming and integrated crop management practices.
 
The Government of India is promoting use of these beneficial micro organisms in various schemes for agriculture and allied sectors though their adaptability is very low.
 
The ASSOCHAM representation to the FM also highlighted that presently, bio-pesticides/bio-control agents are taxed in bracket of 5-6 per cent by majority of states but on the basis of their certifications they are exempt from paying excise and other taxes.
 
Similar to the bio-fertilizers’ segment, they are also provided subsidy and other benefits for setting up such plants.
 
 
About ASSOCHAM:
ASSOCHAM initiated its endeavour of value creation for Indian industry in 1920. It was established by promoter Chambers, representing all regions of India. Having in its fold over 400 Chambers and Trade Associations, and serving over 4.5 lakh members across India. ASSOCHAM has emerged as the fountainhead of Knowledge for Indian industry, which is all set to redefine the dynamics of growth and development in the Knowledge Based Economy. More information available on www.assocham.org
 
For further details, please contact:
 
Manju Negi
AVDHESH SHARMA   
ASSOCHAM
ASSOCHAM   
011-46550509; +919810910911
011-46550508; +918527639419
 

 

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