Storage, warehousing of seeds might soon be exempt from GST
What's the story
The Goods and Services Tax (GST) Council is likely to exempt storage and warehousing of sowing seeds from GST in its next meeting on October 8, as per Moneycontrol. The council is also expected to consider a reduction of the GST on retreaded tractor tires from 18% to 5%. These measures are part of an effort to ease the tax burden on the agriculture sector.
Tax relief
Proposed measures to reduce farm input costs
The proposed measures by the GST Council are aimed at reducing farm input costs and providing clarity on tax treatment of agriculture-related goods and services.
An official said, "Activities such as grading, treatment and packing would no longer prevent the seeds from qualifying for the warehousing exemption."
This could reduce the storage costs that are passed on to farmers.
Tax categorization
Separate entry for psyllium seeds
The GST Council is also likely to create a separate entry for psyllium seeds, or isabgol, at the nil rate. This would apply to fresh, chilled, frozen or dried seeds.
The move aims to ensure that this crop, mostly grown by smallholders, isn't taxed differently.
The council is also expected to approve a tax of 5% on all seaweed-based bio-stimulants registered under the Fertiliser Control Order 1985.
Crop growth
Tax reduction on seaweed-based bio-stimulants
The proposed tax reduction on seaweed-based bio-stimulants would lessen the financial burden on products that enhance crop growth, soil health, and yields.
These agricultural products help plants utilize nutrients better and grow more effectively.
They include seaweed extracts, humic and fulvic acids, amino acids, protein hydrolysates, and certain microbial products.
Tire tax
Reduction in tax on retreaded tractor tires
The GST Council is also likely to reduce the tax on retreaded tractor tires from 18% to 5%. This would bring it in line with new tractor tires, which were brought down to 5% at the 56th meeting.