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Rig Owners and Agents Welfare Association Demands for GST Clarification on Rate

Rig/ Borewell Association Seek GST Rate Clarification

The Rig Owners and Agents Welfare Association in Madurai expressed their concerns regarding the absence of clear government instructions exempt GST on rig/borewell work which is used for agricultural activities. According to the association members, farmers were burdened with paying 18% GST due to the lack of clarity.

Note: Madurai District Rig Owners and Agents Welfare Association is demanding a GST reduction in borewell services. They have been trying to speak with the Union Minister about this issue, and asking for help in the upcoming 54th GST Council meeting.

In a petition addressed to the Prime Minister and the Finance Minister, the association members requested that borewell works, which are predominantly used for agricultural purposes and constitute around 90% of it, be categorized under the 5% GST slab.

The association members emphasized their indirect contribution to national development by facilitating water access to the farmers of the nation, which is a vital resource for farming.

They stated that there was clarity regarding the applicability of tax to rig/borewell operations used for agricultural activities, during the service tax regime.

The primary fuel for rig operations is diesel. However, the recent GST Council meeting did not provide any clear notification regarding the inclusion of petrol and diesel under the GST framework, complicating matters related to rig operations for agricultural purposes.

The Madurai district president of the association for the rig/borewell operations stated that the petition also called for a one-time amnesty scheme for rig/borewell operations since the implementation of GST.

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Published by CA Amit Gupta
The Managing Director of SAG Infotech Private Limited is an accomplished professional with specialized knowledge in complex taxation areas such as GST, income tax, TDS, and other related topics. With the goal of facilitating tax compliance, he endeavours to equip Chartered Accountants, Company Secretaries, and other accounting professionals with valuable knowledge and resources. View more posts
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2 thoughts on "Rig Owners and Agents Welfare Association Demands for GST Clarification on Rate"

  1. President,Madurai Rigowners association.Respected sir,First of all i thankyou for representing my petition. The above petition was submitted by me to the FM.So far nothing has been done.Now my few members has been summoned by the GST COUNCIL.AND SOME PENALISED GEAVILY.Furthermore Centrt water

    1. Thank you for mentioned our petition. Sir im the President of Madurai Rigowners assn.Yesterday(31/5/22024)we attended the GST meeting and regressed our grivenses to the meeting.I request you to give me your official. Mail id.I will send the reply frm the GST commissioner.Thanking you

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