Is GST boon or curse to Agri ?
Now a days in India the govt. had been criticized for the enact of the GST bill .The after effects of GST discussed between the economists and business men. But the majority of the details about GST continues as a mystery now I try to gone through the
Pathways and present situation of GST ……………………………………………………………………………………….
The pathways is below
• The idea of a Goods and Services Tax (GST) for India was first mooted sixteen years back, during the Prime Ministership of Shri Atal Bihari Vajpayee.
• Thereafter, on 28th February, 2006, the then Union Finance Minister in his Budget for 2006-07 proposed that GST would be introduced from 1st April, 2010.
• The Empowered Committee of State Finance Ministers (EC), which had formulated the design of State VAT was requested to come up with a roadmap and structure for the GST
• Based on discussions within and between it and the Central Government, the EC released its First Discussion Paper (FDP) on GST in November, 2009.
• In March 2011, Constitution (115th Amendment) Bill, 2011 was introduced in the Lok Sabha to enable levy of GST. However, due to lack of political consensus, the Bill lapsed after the dissolution of 15th Lok Sabha in August 2013.
• On 19th December, 2014, The Constitution (122nd Amendment) Bill 2014 was introduced in the Lok Sabha and was passed by Lok Sabha in May 2015.
• The Bill was taken up in Rajya Sabha and was referred to the Joint Committee of the Rajya Sabha and the Lok Sabha on 14th May, 2015. The Select Committee submitted its report on 22nd July, 2015.
• After GST Council approved the Central Goods and Services Tax Bill 2017 (The CGST Bill), the Integrated Goods and Services Tax Bill 2017 (The IGST Bill), the Union Territory Goods and Services Tax Bill 2017 (The UTGST Bill), the Goods and Services Tax (Compensation to the States) Bill 2017 (The Compensation Bill), these Bills were passed by the Lok Sabha on 29th March, 2017. The Rajya Sabha passed these Bills on 6th April, 2017 and were then enacted as Acts on 12th April, 2017.
• Thereafter, State Legislatures of different States have passed respective State Goods and Services Tax Bills. After the enactment of various GST laws, GST was launched with effect from 1st July 2017 by Sh.Narendra Modi, Hon'ble Prime Minister of India in the presence of Sh.Pranab Mukherjee, the then President of India in a mid-night function at the Central Hall of Parliament of India.
As per Article 279A of the amended
Constitution, the GST Council is a joint forum of the Centre and the States,
and consists of the following members: -
|
Union Finance Minister
|
Chairperson
|
|
The Union Minister of State, in-charge of Revenue, Min. of
Finance
|
Member
|
|
The Minister In-charge of Finance or Taxation or any other
Minister nominated by each State Government
|
Members
|
Now we are
going for check the after effects of GST in Economy especially in Agriculture
sector ,
Agriculture is one of the most critical sectors of the Indian economy.
Growth and development of agriculture and allied sector which affects
well-being of people at large, rural prosperity and employment and forms
an important resource base
for a number of agro-based industries
and agro-services.
The agriculture sector in India has
undergone significant structural changes in the form of decrease in share
of GDP from 30
per cent in 1990-91 to 17.4 in 2015-16 (Annual Report, 2015-16 MoA & FW)
indicating a shift from the traditional
agrarian economy
towards a service dominated one.
However, this
decrease in agriculture's contribution to GDP has not been accompanied by a
matching reduction in the share of agriculture in employment.
About 52 per
cent of the total workforce is still employed by the farm sector which makes
more than half of the Indian population dependent on agriculture for sustenance
(NSS th 66 Round).
Value addition
in agriculture, thus, holds huge potential for enhancing the living standard of
majority of the people. Improved agriculture marketing offers a major
opportunity to achieve this objective. Goods and service tax will have both
negative and positive impact on agriculture
The price of
agricultural commodities will go down, as previously the agricultural
commodities are charged with different prices within the state, inter-state and
in overall country. GST would lead to efficient allocation of resources.
Terms of trade move in the favour of
Agriculture as compared to manufacturing sector. This will increase prices of
some commodities like milk, tea, etc. thus, boon the millions of farmers in
India.
In nut shell we can say that it will effect
directly and indirectly to agriculture sector.
Impact ·of GSTon
Farm sector:
· The execution of
GST is expected to boost the agricultural market as taxation under a subsumed
single rate would make the movement for different states at every point of
their transaction.
· GST would make
the agro-machineries affordable to the small and marginal farmers in India
which was beyond their reach due to high ·excise duty on the machinery.
.
· The proposed GST
rate should provide consistency in tax of processed and unprocessed food items
so that processed food comes within the reach of all the consumers.
· Fertilisers which were subjected to a 0% to 8% VAT will
hence forth attract 12% tax under GST. This will increase the prices of
fertilisers by 5% to 7%.
· Pesticides have been placed in 18% slab. This is an
increase from the pre-GST 12% excise and VAT of 4-5% in some states.
· While tractors are placed in 12% slab, several components
and accessories of tractors are placed in the 28% slab. It is not clear what
impact GST will.
· Highly used agri-commodities such as rice, wheat, milk,
fresh fruits and vegetables are placed in the zero tax slab. This will help in
avoiding tax, cess and arhatiya commission levied by some States.
· The taxation structure for processed food is not very
encouraging. The processed foods like fruit and vegetables juices under GST
will be taxed at 12%
.
· Shortages in agricultural goods which are
imported as domestic produce could not fulfill the requirement are charged
with custom duty. As custom duty would not be subsumed in GST
custom duty would continue. Hence, the exemption from basic duty on basic
agricultural produce like pulses would continue.
·
The main impact that
GST in agriculture would bring is the inflation with currently 4% VAT being
increased to 8% on many food items including cereals and grains as the
exemption under VAT is limited to unprocessed food. The most affected from the
inflation would be the consumers living below the poverty line.
Here we can conclude that GST has both good and bad effects on
agriculture so govt. should correct the
bad features and also
Spread the good effects and advantages to the farmers and rural
people unless it will remain as a curse and unrecognizable thing to
To the people.
And there by we can reduce the malpractices , manipulation and
corruption in this field also.
Thank you
Thank you for your valuable comment
ReplyDelete