The scheme for offering solar-based irrigation pumps to farmers is in the confusive state as there is no clarity on the goods and service tax provision on the said pumps.
Along with the confusion, there is an increased burden of cost on the solar irrigation pumps which is making the doubtful scenario for the farmers to adopt this clean energy based irrigation pumps in their farms.
KUSUM, also known Kisan Urja Suraksha Evam Utthaan Maha Abhiyan, is a prime minister scheme run for helping farmers in order make them save money by considering fuel saving method.
The scheme is set to receive funding from the banks which will be further expanded through rural India. The overall budget for the scheme is targeted at a massive INR 1.4 trillion.
The scheme was seen to be encouraging at first but later there were different GST rates applied to the scheme which further complicated the scheme and its benefits to the farmers.
For instance, the Rajasthan and Maharashtra applied the 18 percent GST to the solar pumps ordered under the scheme while on the other hand, Karnataka applied 5 percent GST which made the case complex.
Although states like Uttar Pradesh, Haryana, Maharashtra, Rajasthan and Karnataka have forwarded the tenders of the solar irrigation pumps coming under the solar scheme also under this same dilemma.
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As per the traders and people are known to the scheme stated that there are lots of loopholes in the taxation criteria in the KUSUM solar irrigation scheme itself. It means that the confusion would later drown the scheme into more delay.
