Yaduveer Krishnadatta Chamaraja Wadiyar, the MP from Mysuru, had a meeting with Finance Minister Nirmala Sitharaman in New Delhi, where he requested her to extend the GST exemption for black pepper.
The MP said that he met the Finance Minister and was concerned about the GST exemption for black pepper, a critical concern for farmers in Kodagu, Hassan, and Chikkamagaluru districts. “I requested continuation of exemption, highlighting its classification as agricultural produce and potential negative impact on farmers and exports if GST was imposed. I am thankful for the Minister’s positive consideration, which will benefit our farmers,” Mr Yaduveer said.
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In their meeting, Mr Wadiyar informed the Finance Minister that constituents from Kodagu had raised concerns about notices they received from the GST office in Mysuru, indicating that their pepper sales are liable for GST and that they must register under the GST Act.
From a misunderstanding, the GST notice has emerged for the nature of the drying process. The growers mentioned that the drying process does not amend the crucial pepper characteristics.
It is a preservation process. Levying GST on the products can have influential negative outcomes for the plantation districts of Karnataka, along with the Kodagu, Hassan, and Chikkamagaluru districts, and the growers in Kerala and Tamil Nadu. It directed to rise in the prices, lessens the profit margins and potential job losses.
Also, it can impact the exports negatively, lessening the competitiveness of India in the worldwide market, the MP said, in a memorandum to the Finance Minister.
Mr Wadiyar mentioned that further to drying green pepper at the estate, to improve its storage capacity, this dried pepper could be given a separate HSN code and exempt from GST applicability. Since it is an agricultural produce, this shall help farmers and there are already HSN codes available for black and green peppers.
MP mentioned that farmers are seeking for your assistance for the agriculture community and effective decision on the case.
