The council of the chemical and the petrochemicals has been asked by the finance ministry to lessen the GST on the pesticides from 18 to 5% with the aim to provide equality to the agriculture sector towards taxation.
The 18% GST has been imposed on the pesticides and the fertilizers with 5% GST or more than 12% VAT prior to the beginning of the indirect tax These types of taxes paid on Consumption by the consumer but they do not pay directly to the government (unlike income tax). For example, GST, Sales Tax, VAT, Custom Duty and Octroi Tax platform.
In recent times the pesticides manufacturers and Formulators Association of India (PMFAI) urged that the council must diminish 5% GST with respect to the current 18% on the pesticides similar to other farm inputs like seeds as well as fertilizers.
“Committee is dismayed to note that GST on pesticides has increased to 18 percent after the rollout of GST from around 12 percent VAT in most of the important states where the pesticides are consumed on a large-scale. GST on fertilizers is only 5 percent and pesticide being another agro-input deserves to be put under 5 percent slab of GST.” suggest to the govt via the standing committee.
The committee inside the report declares that the committee knows the suggestion of the dept of the chemicals and petrochemicals to get GST rate slab Grab the information of revised GST slab rates on consumer products in India, Although the GST council finalized the slab rates like 5%, 12%, 18% and 28% to 5%. As this is not good that the crops whose price is Rs 90k cr are lost yearly as per the pests and the diseases the society be lessened from 18% to 5% so as to provide the advantage to the farmers and to raise the agricultural production to the country.
The GST deduction will assist 3/4th of the sum of the farmers in India, who are not present in the boundary lines, to save their crops excluding any loss to the central exchequer. This will assist the farmers to harvest the crops with minimal loss and to safeguard the returns indeed.