Karnataka Sugarcane Cultivators’ Association Urges FM to Grant GST Exemption on Agricultural Equipment
A delegation of farmers led by Kurubur Shanthakumar met Union Finance Minister Nirmala Sitharaman to discuss the impact of GST on agricultural inputs, requesting its removal. They also sought delinking CIBIL scores from agricultural loans, exemptions from Minimum Alternate Tax for farmer producer organizations, and exclusion of agricultural land from the SARFAESI Act. Sitharaman addressed their concerns.
A delegation of farmers met Union Finance Minister Nirmala Sitharaman and asked if agricultural equipment and ingredients used for the cultivation are not imposed with Goods and Services Tax (GST).
State Sugarcane Cultivators Association president Kurubur Shanthakumar led the delegation and furnished a memorandum listing their demands.
Mr. Shanthakumar cited that GST on the agricultural equipment and other products used as inputs for cultivation surged the production cost adding to the financial woes of the farmers.
The association has furnished distinct representations to the state and the union government for many years asking to remove the GST on agricultural equipment and other inputs for crop cultivation, hence no answer is there.
Ms Nirmala Sitharaman clarified to the delegation that there is no GST applied to products or equipment used exclusively for agriculture; however, tax applies when they are used for non-agricultural purposes.
Under the memorandum, it wished the government to delink CIBIL score from the agricultural loan. Mr Shanthakumar cited to media that the farmers tend to default on timely repayment because of the vagaries of nature. However, this has a negative bearing on the CIBIL score which lessens their probability of qualifying for the loan.
It was indeed cited under the memorandum that the agricultural land which belonged to the farmers was being seized via the financial institutions under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SURFAESI Act) based on the non-repayment of the loan.
Mr. Shanthakumar said before the media that the act was being used for the recovery of the agricultural loan and farmers were in distress since their timely payment schedule was not affected by vagaries of nature and it was not a wilful default. Therefore the farmers wished the agricultural land to be opted from the purview of the SURFAESI Act if not canceled altogether.
Directing to the incentives furnished via the Union government for farmers’ producer organizations, the association members express regret that Minimum Alternate Tax (MAT) was being charged to farmer producers organizations and therefore claimed for its abrogation or exemption for 10 years.
Ms. Nirmala Sitharaman was in the city to inaugurate the Mysuru Sangeetha Sunganda cultural festival organized by the Union Ministry of Tourism and Ministry of Culture, in association with Karnataka State Open University.
Source Link : https://blog.saginfotech.com/karnataka-sugarcane-cultivators-association-fm-grant-gst-exemption-agricultural-equipment#
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