ALSO READAssocham seeks review of GST rates for agricultural inputs Road and Railway to be exempted under the GST regime: ASSOCHAM plea to Govt. ASSOCHAM says roads, railways should be exempted from GST Govt. looks for timely implementation as GST Council clears State, Union Territory GST Tractor makers demand GST rate cut to 18 pc
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.
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.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)