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Odisha seeks 5% GST on 'kendu' leaves

IANS  |  Bhubaneswar 

Odisha on Thursday requested Jaitley to reduce the (GST) on 'kendu' (tendu) leaves from 18 per cent to 5 per cent.

In a letter to Jaitley, the requested the matter be placed in the next meeting which could consider reducing the GST on the forest produce.

He said the tribals have the right to procure and sell these products.

After the implementation of GST from July 1, 2017, 18% GST is levied on Kendu leaf. In Odisha, prior to implementation of GST, there was 5% VAT on Kendu (Tendu) leaf, Patnaik said.

"This hike from 5% to 18% is very high. Due to such hike in the GST rate, thousands of quintals of kendu leaves are still lying at various godowns. This has led to a drop in selling price of Kendu leaves sold by through tender," he added.

He said the drop in selling price of Kendu leaves has adversely impacted the implementation of social security and welfare schemes for 8.5 lakh Kendu leaf pluckers, seasonal workers and binding workers engaged in this trade.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, November 29 2018. 21:28 IST