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Anomaly in levy of GST : Seed firms
Under the Chapter 1209 of GST, seeds, fruits and spores of the kind used for sowing are exempted from taxation, but there is no mention of Paddy, Maize and Millets, which is a cause of rift among many seed producer companies. Instead, these are covered in Chapter 10, which levies 5 per cent GST on cereals sold in containers and bearing a registered brand name. Many seed producers mention this to be an anomaly in the levy of GST. Also, the government’s decision to levy 18 % GST on crop protection has come as a rude jolt to the farming community, which is reeling under rising costs and the vagaries of the weather, which previously was 16%.
Under the Chapter 1209 of GST, seeds, fruits and spores of the kind used for sowing are exempted from taxation, but there is no mention of Paddy, Maize and Millets, which is a cause of rift among many seed producer companies. Instead, these are covered in Chapter 10, which levies 5 per cent GST on cereals sold in containers and bearing a registered brand name. Many seed producers mention this to be an anomaly in the levy of GST. Also, the government’s decision to levy 18 % GST on crop protection has come as a rude jolt to the farming community, which is reeling under rising costs and the vagaries of the weather, which previously was 16%.
First published on: 28 Jul 2017, 22:07 IST
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