Mumbai : The special session to ratify State Goods and Service Tax (SGST) was scheduled in mid-May. It will now be held from May 21 to 23 in Mumbai.
Meanwhile, the agricultural sector which has recorded positive growth rate of 2.5 per cent. The farmers are hopeful of tax exemptions for seeds, manures, insecticides and services that are offered to the farmers by their federation and Agricultural Produce Market Community (APMC) once the GST comes into force.
The Business Advisory committee (BAC) meeting chaired by the Chief Minister Devendra Fadnavis was held on Saturdayat Vidhan Bhavan. The committee has decided to conduct a special session in both the Houses of the legislature to ratify the SGST.
The Centre had mandated that every state must enact SGST before May 31. Maharashtra has already decided to implement it from July 1. An official from the finance department stated that the government will now have to enact its own SGST before July 1, to bring into effect the uniform taxation law.
On the issue of taxation the official said, “The rate of taxation for goods and commodities will not vary and the commodities will be adjusted in the corresponding tax slabs.” The official added that from July 1, the people will have to pay the tax only at the point of sale rather than paying from the production facility, central excise and state sales tax. “The sharing of the Central and state taxes will be worked out in June before the SGST comes into effect,” he said.
Meanwhile, the Shiv Sena is concerned about the octroi, the major source of revenue for BrihanMumbai Municipal Corporation (BMC). The octroi will be abolished once GST is implemented and that has caused immense worry for Sainiks, which is their major source of earning. Octroi bags more than Rs. 7,000 crore for the exchequer of BMC.
- Air conditioned vehicles transporting perishable agricultural produces should be free of service tax.
- Seed certification sector should be kept completely tax- free in GST.
- Service tax should not be applied to agricultural support services such as breeding, vaccination, crop management, integrated pest control, pest control advice, projects of service.
- Tax on agricultural tools such as manures, insecticide and equipment, should be uniformly kept to 5%.
- Tax should not be levied on the agricultural equipment driven by the bulls.
- Currently, the drip irrigation set has 6% VAT and this tax is not charged in other states.
- Drip irrigation and sprinkler irrigation sets should be totally made tax- free
in the GST.