Around two years ago, while addressing the gathering at the Krishhithon Agriculture Expo held in Nashik, then state agriculture minister Abdul Sattar said that his government will urge the Centre to abolish GST on farm supplies including fertilizer, seeds, and even agricultural equipment. It is critical to lower the cost of agricultural inputs. Farmers will benefit from reduced GST rates on all goods used for farming. I have spoken with Chief Minister Eknath Shinde about the situation, and the state government would shortly bring this topic up with the Center, the minister had stated at the event. Two years later the situation has not changed and the helpless agrarian community bearing the burden. The government which is very generous with the diamond jewellery sector while imposing the tax has not even left the educational field along with the farmers. The state government is not leaving any stone unturned to add to the woes through the SGST.
The Goods and Services Tax was implemented in India with effect from 1st July 2017. In India, the maximum population is of the middle class and lower middle class where people either belong to the service class or they depend on agriculture for their living. In this scenario, the most important question is what is the impact of GST on a common man or a middle-class family. For the general public, the actual impact of any economy is when the prices of their necessities become affected. For the public in large when prices become low for the day-to-day goods and services that are consumed, the economy is good, else if the inflation rate is higher, then the public gets unsatisfied with the changes done by the government.
The single largest contributing Sector to the Indian Economy is Agriculture. It alone accounts for up to 16 percent of the Indian GDP. GST was supposed to have more of a greater indirect impact on the Agriculture Sector. GST directly or indirectly affects all sections of the economy. Agriculture industry is too not an exception. Transportation is one factor that has a direct impactful effect on Agriculture. The GST rate levied on agricultural products is 5 percent.
At the same time, GST rates on education services in India range from 5 percent to 28 percent, varying significantly depending on the type of service provided. Interestingly, diamond jewellery has finally been brought under the GST regime.
Now GST on diamonds being cut and polished from 0.25 percent to 1.5 percent effective from 18th July 2022. This shows the government’s overall approach towards the elite class. Significantly, GST on aircrafts, helicopters and cruise ships is also very nominal. The issue of ‘Tax terrorism’ was raised in Parliament. INDIA bloc leaders protested against increasing GST on various sectors. The government is in no mood to relent. People are suffering but a certain class is getting privileges.
Comments