GST bill will give a boost to the agriculture sector

GST bill will give a boost to the agriculture sector

Posted On - 29 Aug 2016

Tsunami of debates and discussions came crawling in ever since the GST bill been given a go-ahead from the centre. As the passage of the GST bill rolls in towards scripting history in the Indian economy, various sectors agreed-disagreed with the India’s biggest tax reform. While PM Modi made a strong pitch saying it will put an end to tax terrorism, some were skeptical if India was ready to take such a great leap forward.

Indian agriculture sector which contributes around 16% to GDP, are yet to pull down the curtain on how the implementation of the bill would affect the sector as there are mostly marginal and small farmers in the country. However, many lauded the centre’s decision saying it will help in the free flowing of the agri-products without any hindrance although there might be slight variation in taxation.

“Farmers appreciate this decision,” claimed P. Chengal Reddy, Chief Advisor of the Consortium of Indian Farmers Association (CIFA).

“GST is like a big boost to the agriculture sector,” commented PPS Pangali, President of BORLAUG Farmers Association for South Asia.

“Interstate moving needs permission or approval as there are various taxes charged by different states. Now, this GST bill will solve most of the problem and will pave way for free market and moving from one part to another for retail and processing. Traders when they take a particular product across the country, at every point they are subject to various taxes, approvals, permissions and license. So this GST bill is the first act towards total liberalization of agriculture marketing,” explains Chengal Reddy to Krishi Jagran.

While Pangali feels that the introduction of the constitution (122nd) amendment bill will play a weighty role in the affordability of agri-machineries. “It will give incentives on the sale of diesel which is the main product with which trucks carrying goods and tractors on the field operate. Incentive to agri-machinery on which excise duty is high will make it easily affordable than Chinese machinery. In India, where the farmers are mainly small and marginal and cannot afford expensive machineries, it will be a positive factor,” Pangali said.

However, the agri-commodity sector is still hanging by thread as to whether the APMC or mandi taxes will be abolished and only GST will be applicable.

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