New Delhi, Sep 9 The reduction in GST (Goods and Services Tax) rates has come as a boon for the agriculture and dairy sectors as they will lead to major benefits for small and medium farmers, according to a statement issued by the Union Ministry of Agriculture on Tuesday.
Lower GST on agricultural machinery and solar-powered equipment will reduce farming costs and increase farmers’ profits. GST has been reduced on bio-pesticides and micronutrients, which will benefit farmers and encourage a shift from chemical to bio-fertilisers.
With no GST on milk and cheese and the tax rate on butter and ghee reduced from 12 per cent to 5 per cent, the prices of these products will come down, which will boost demand and lead to higher growth in the dairy sector, benefiting farmers and livestock owners. The GST reforms will also promote integrated farming. Clear benefits will be visible in animal husbandry, beekeeping, fisheries, agroforestry, and poultry farming, the statement said.
The reduction in GST on tendu leaves from 12 per cent to 5 per cent will strengthen the livelihood of tribal communities, while lower GST on commercial goods vehicles will make the transportation of farm produce cheaper, it said.
The GST on tractors (less than 1800 cc) as well as tractor parts has been reduced to 5 per cent, leading to lower tractor prices which will make mechanisation accessible to small and medium farmers, saving time, reducing labour costs, and improving productivity. The reduction in the prices of tractor parts will also reduce the cost of maintenance for farmers, the statement pointed out.
The reduction in GST from 18 per cent to 5 per cent on ammonia, sulphuric acid and nitric acid will correct the inverted duty structure for fertiliser production and help to bring down the input cost for farmers.
Similarly, the GST cut from 12 per cent to 5 per cent on 12 bio-pesticides and several micronutrients will make these inputs more affordable, promoting eco-friendly and sustainable agriculture. It will also encourage farmers to shift from chemical pesticides to bio-pesticides, improving soil health and crop quality.
The GST on ‘prepared or preserved fish’ has also been reduced from 12 per cent to 5 per cent, which will encourage aquaculture and fish farming nationwide.
With the GST on preserved vegetables, fruits, and nuts coming down from 12 per cent to 5 per cent, cold storage, food processing, and value addition will get a booster shot. This will also result in a reduction in wastage of perishables, ensuring farmers get better prices, the statement added.
–IANS
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(Auto generated news from IANS Feed. This has not been edited by enewstime desk)
