New Delhi [India], September 4 (ANI): Secretary of the Department of Revenue in the Ministry of Finance, Arvind Shrivastava, said that the decision to correct the inverted duty structure in GST for agricultural goods will encourage the domestic use of fertiliser.
When asked about the increasing global competitiveness of the farmers and the government’s initiative to raise farmers’ income, Arvind Shrivastava said that the GST Council’s decision to cut tax on agricultural goods will make fertilisers cheaper and will increase productivity.
Shrivastava said, “Under GST, the problem of inverted duty is being solved in the fertiliser sector, which will enable and encourage the domestic use of fertiliser.”
“The implements in the agriculture sector, which were at 12 per cent, are being reduced to 5 per cent. This will do two things. First, it will make it cheaper for farmers. Two, we expect more farmers to be able to use it, which enhances productivity… There will be a positive effect,” he added.
Furthermore, the Secretary of the Revenue Department stated that a reduction in GST rates will support ongoing policies and programs in the agricultural sector.
He said, “In addition to it, all that the government is doing in the agricultural sector through policies and programs will continue. Eventually, we will be supplementing those effects by this.”
Earlier, the 56th GST council meeting decided to reduce GST on agricultural goods, such as tractors, agricultural, horticultural or forestry machinery for soil preparation or cultivation, harvesting or threshing machinery, including straw or fodder balers, grass or hay mowers, and composting machines, from 12 per cent to 5 per cent.
Correcting the inverted duty structure in the fertiliser sector, the Council lowered the GST on Sulphuric acid, Nitric acid and Ammonia from 18 per cent to 5 per cent.
This comes as the GST council decided to rationalise GST rates to two slabs of 5 per cent and 18 per cent by merging the 12 per cent and 28 per cent rates. (ANI)
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