GST Relief Likely For Farmers As Centre Proposes Nil Tax On Key Irrigation Tools: Sources
Additionally, the tax slab on bicycles may move to 5% from the existing 12%, sources said.
The central government has proposed zero goods and services tax on key farming equipment like sprinklers among other irrigation tools, sources told NDTV Profit.
This would mark a significant relief for farmers, as thus far, the GST levied on sprinklers stood at 12%.
Additionally, the tax slab on bicycles may move to 5% from the existing 12%, the persons privy to the development said.
This comes in the backdrop of the Centre mulling over a major overhaul of the GST regime. It has proposed a two-slab taxation structure that could bring widespread relief to consumers and streamline indirect taxation.
As per the Centre’s proposal, the existing 12% and 28% GST slabs will be scrapped entirely. In their place, a simplified structure is being mooted while retaining the 5% and 18% tax slabs.
Under the proposal, 99% of items currently taxed at 12% may shift to the 5% slab, substantially reducing the tax burden on a wide range of goods and services, including many mass consumption and essential items such as edible oil, toothbrushes, and other daily essentials, which will either be exempted or moved to the 5% bracket, as per sources.
