New Delhi [India], September 6 (ANI): The sweeping GST reforms unveiled this week will strengthen the cooperative sector, make their products competitive, increase demand for their products and increase the income of cooperatives, the Ministry of Cooperation has said.
According to a statement, the GST reforms will promote rural entrepreneurship, promote cooperatives in the food processing sector and ensure affordable access to essential goods for millions of households.
“GST rate reductions will benefit cooperatives in farming and animal husbandry, promote sustainable farming practices, and benefit small farmers and FPOs. The NextGenGST reforms brought under the leadership of Prime Minister Shri Narendra Modi Ji has been hailed by the entire dairy cooperative sector, including the big cooperative brands like AMUL,” the statement read.
In the dairy sector, direct relief has been provided to farmers and consumers as milk and paneer, whether branded or unbranded, have been exempted from GST, while the tax on butter, ghee and similar products has been reduced from 12% to 5%, and GST on milk cans made of iron, steel or aluminium has also been lowered from 12% to 5%.
“These measures will make dairy products more competitive, provide direct relief to dairy farmers, and strengthen women-led rural enterprises, particularly self-help groups engaged in milk processing,” the Ministry said.
“Affordable dairy products will enhance nutrition security by making essential protein and fat sources more affordable for households, and raise incomes for cooperatives in the dairy sector.”
In food processing and household items, a major relief has been given as GST on cheese, namkeens, butter and pasta have been reduced from 12% or 18% to 5%, while jams, jellies, yeasts, bhujia and fruit pulp or juice-based drinks are now taxed at 5%.
Chocolates, corn flakes, ice creams, pastries, cakes, biscuits and coffee have also seen a reduction from 18% to 5%.
“Lower GST will reduce household expenditure on food items, stimulate demand in semi-urban and rural areas, and promote growth in the food processing and dairy cooperative sectors. It will further boost food processing, milk processing cooperatives and private dairies, raising farmer incomes,” the ministry said.
Additionally, GST on packing paper, cases, and crates has been reduced to 5%, easing logistics and packaging costs for cooperatives and food producers.
The GST on tractors below 1800 cc has been reduced to 5%, while tractor components such as tyres and tubes, hydraulic pumps, and several other parts have also seen a reduction from 18% to 5%.
The GST on key fertiliser inputs such as ammonia, sulphuric acid and nitric acid has been reduced from 18% to 5%, correcting the inverted duty structure, lowering input costs for fertiliser companies.
The Ministry said it will prevent price hikes for farmers, and ensuring timely availability of affordable fertilisers during sowing seasons, which will directly benefit many cooperatives in the farming sector.
Similarly, the GST on twelve bio-pesticides and several micronutrients has been reduced from 12% to 5%.
The government believes it will promot eco-friendly and sustainable farming practices by making bio-based inputs more affordable, encouraging farmers to shift from chemical to bio-pesticides for better soil health and crop quality, giving direct benefits to small organic farmers and FPOs in alignment with the Government’s Natural Farming Mission.
The GST on commercial goods vehicles such as trucks and delivery vans has been reduced from 28% to 18%, lowering the upfront capital cost of trucks which form the backbone of India’s supply chain by carrying nearly 65-70% of goods traffic.
The Ministry said it will reduce freight rates per tonne-km and creating a cascading effect that makes the movement of agricultural goods cheaper, cuts logistics costs, and improves export competitiveness.
“The reduction of GST on third-party insurance of goods carriage from 12% to 5% with Input tax Credit (ITC), further complements these efforts,” the statement concluded.
Changes have been made under GST what the government termed the next-generation reforms. It came just days after Prime Minister Narendra Modi announced it from the ramparts of the Red Fort on Independence Day. This is aimed at reducing the tax burden on citizens while stimulating economic growth.
The GST Council approved significant rate cuts across multiple sectors, which the government has described as a Diwali gift for the nation. (ANI)
Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News
HINDI, MARATHI, GUJARATI, TAMIL, TELUGU, BENGALI, KANNADA, ORIYA, PUNJABI, URDU, MALAYALAM
For more details and packages
