Now, farmers have enough reasons to cheer as the Goods and Services Tax (GST) Council on Friday slashed the rate on fertilizer from 12 per cent to 5 per cent, a move to reduce the burden on farmers. The GST Council, in another move to give relief to farmers, also reduced the tax rate on exclusive parts of tractors from 28 per cent to 18 per cent.
Just a couple of hours before the historic rollout of the new indirect tax regime at midnight, Finance Minister Arun Jaitley said it was decided by the GST Council that tax rate on fertilisers will be at 5 per cent, not 12 per cent which was decided earlier.
“Some States had kept VAT on fertilizer at lower rate. Keeping that in mind, there was a consensus in the GST Council to bring the rate to 5 per cent,” Jaitley, who heads the GST Council, told reporters after the 18th meeting of the Council.
“Besides, we have also decided to reduce the tax rate on exclusive parts of tractors from 28 per cent to 18 per cent,” he added.
The Council meeting was called more as a thanksgiving meet with no formal agenda. But it did take up the cause of farmers at the meeting.
Prime Minister Narendra Modi also attended a dinner for the GST Council members as a special thanks-giving for the decisions the panel took since its formation in September last year.
Since its first meeting on September 23, 2016, the Council has met 18 times and decided on range of issues -- from drafts of supporting legislations to GST rules, rates of taxes and fitting over 1,200 goods and services in the four-tire structure of 5 per cent, 12 per cent, 18 per cent and 28 per cent.