15 Dec Impact of GST on Agriculture
कृषि पर जीएसटी का प्रभाव The impact of GST on agricultural sector is foreseen to be positive. The agricultural sector is the largest contributing sector the overall Indian GDP. It covers around 16% of Indian GDP. The newly implemented indirect tax regime is influencing the agriculture industry and farmers due to the 5 percent GST rates on agricultural products. It is expected that in long-term the industry is foreseen to be positive. The implementation of GST would have an impact on many sections of the society. One of the major issues faced by the agricultural sector is the transportation of agriculture products across state lines all over India. It is highly probable that GST shall resolve the issue of transportation. GST may provide India with its first National Market for the agricultural goods. There are a lot of clarifications which need to be provided for rates for agricultural products. Special reduced rates should be declared for items like tea, coffee, and milk under the GST. Current Tax Laws There are certain food items like rice, sugar, salt, wheat, flour which are exempted from CENVAT. Under the state VAT, cereals and grains are taxed at the rate of 4%. Agricultural products go through a lot of licensing and a number of indirect taxes (VAT, excise duty, service tax) under the...