New Delhi: Maharashtra's agriculture, industry, and services sectors are set to benefit from recent Goods and Services Tax (GST) reforms that have reduced rates to enhance consumption and competitiveness, government informed on Sunday. GST reforms that reduced costs for consumers and improved margins for producers are expected to benefit industries including sugar, processed foods, fisheries, handlooms and IT services.
The GST reduction on refined sugar from 12 per cent to 5 per cent will lower sugar prices by around 7 per cent at whole sale level, benefiting India’s largest sugar producer-Maharashtra’s sugar belt, comprising of Kolhapur, Sangli, Satara, Pune, Solapur, and Ahmednagar. Reductions on processed fruit products, including juices and jams, will benefit horticultural hubs in Nagpur, Nashik, Jalgaon, and the Konkan region.
The GST rate cut will lower the cost of processed food products by 6-7 per cent. This is expected to encourage higher consumption, promote value addition, and increase the offtake of produce from farmers across the horticultural belts of the state, an official statement said The reduction of GST to 5 per cent on fabrics, footwear, and handmade art will benefit traditional clusters such as Solapur, Ichalkaranji, Kolhapur, and Paithan in the textile and handicraft sector.
The GST rate cut will reduce input costs for garment and home textile manufacturers by 6-7 per cent, enhancing the competitiveness of Maharashtra’s power loom sector, the government said. Authentic Warli paintings, solar panels, solar water heaters, and other renewable devices are also expected to become 6-7 per cent cheaper, the release said.
The pharmaceutical industry will benefit from a reduced 5 per cent GST on medicines, and exemptions on health and life insurance premiums will enhance affordability of insurance coverage. A change in GST rules now permits thousands of IT/ITES companies in Maharashtra to classify their services as exports and claim GST refunds, significantly boosting their cash flow and global competitiveness, the report noted.
Disclaimer: This story is from the syndicated feed. Nothing has changed except the headline.
