The Central Arecanut and Cocoa Advertising and marketing and Processing Cooperative (Campco) Ltd has urged the Central authorities to monitor the bulk motion of agricultural generate by way of world-wide positioning system (GPS) to suppress tax evasion in some these kinds of solutions.
Kishore Kumar Kodgi, President of Campco, told BusinessLine that the cooperative has already introduced this situation to the discover of Union ministers this kind of as Nirmala Sitharaman, Amit Shah, Prahlad Joshi and Shobha Karandlaje.
He claimed the unscrupulous trader network lures the agriculturists in commodities this sort of as arecanut to offer their develop to the unorganised sector, with out creating files for these types of transactions.
The gullible agriculturists slide prey to the smaller rate gain being passed on by the such traders for the reason that of tax evasion by them. Pursuing this, these farmers do not carry their develop to the organised community such as cooperatives for sale.
In this process, there is reduction of income to the Condition as a result of tax evasion by the linked operators other than the agriculturists.
“In the light-weight of above, we recommend that all bulk motion of products and solutions be protected and monitored by GPS, together with e-way bill, by the GST offices worried. By mandating that all bulk consignments of agricultural provides these as arecanut are electronically monitored, it is feasible to be certain that all these transactions enter the taxation chain and get taxed, thus developing earnings for the States,” he said.
Seeks 2% GST
Stating that the agricultural generates are taxed under GST at distinct costs, he reported Campco has proposed to the Centre that all agricultural commodities that are presently taxed at 5 for every cent slab may well be brought below the 2 for every cent GST slab.
This will motivate farmers to provide their makes to cooperatives and advertising committee platforms, and would be certain in discouraging tax evaders.
Campco has also proposed to the Centre to subsume APMC service fees into GST in order to bring agricultural generates into the organised sector and inspire agriculturists to market their produce to cooperatives and promoting committee platforms.
Stating that Uttar Pradesh is imposing mandi tax of 1.5 for every cent for agricultural commodities dealt via mandis, he urged the need to have to have a re-search at this sort of taxes.
Requesting the federal government to revise GST on copper sulphate, Kodgi claimed copper sulphate is mostly utilized in controlling fungal health conditions in crops this sort of as espresso, arecanut, rubber, cardamom, pepper and ginger and also as a plant nutrient.
Stating that copper sulphate draws in a GST of 18 for every cent now, he reported all sorts of fertilisers coming under the GST levy is at a minimized price of 5 per cent only. But copper sulphate, which is used as fungicide is billed at 18 for each cent, and as micro nutrient is billed at 12 per cent.
Referring to an purchase issued by the Union Ministry of Agriculture and Farmers Welfare in 2017, he explained the buy has labeled all micro vitamins as fertilisers which attract GST level of 5 for each cent. When this is the circumstance, distinctive tax structures for copper sulphate as fertilizer and as micro vitamins lead to confusion.
He stated copper sulphate is currently being applied by small farmers as an agriculture fungicide. Consequently correcting GST level at 5 per cent on all copper sulphate utilized in agriculture would assist farmers to a excellent extent.
Kodgi said the Campco has also requested the previously mentioned ministers to redesign the system of evaluating credit prerequisite and placing conditions of repayment to farmers. At existing, the system of examining credit history limitations are by and substantial unscientific and committed to banking concepts of bygone period.
“In the light of earlier mentioned, we suggest utilisation of technological innovation to map agricultural desires of farmers, evaluate credit rating wants primarily based on previous performances and yields of their holdings, keep track of harvest yields to be certain prompt repayment of loans, and build facts technological innovation-centered systems to reward prompt compensation by much better and decreased fascination prices,” he said.
March 16, 2022