Farmers’ delegation meets Nirmala Sitharaman, seek GST exemption on agricultural equipment 

Farmers delegation meets Finance Minister to seek GST exemption on agricultural equipment, delinking CIBIL score from loans, and more.

A delegation of farmers’ met Union Finance Minister Nirmala Sitharaman here on Friday and sought that agricultural equipment and ingredients used for cultivation be exempted from Goods and Services Tax (GST).

The delegation was led by State Sugarcane Cultivators Association president Kurubur Shanthakumar who submitted a memorandum listing their demands

Mr. Shanthakumar said GST on agricultural equipment and other products used as inputs for cultivation and increased the production cost adding to the financial woes of the farmers.

Though the association has submitted many representations to the State and the Union government over the years seeking an abolition of GST on agricultural equipment and other inputs for crop cultivation, there has been no response, he added.

Ms. Nirmala Sitharaman made it clear to the delegation that there was no GST on products or equipment used strictly for agriculture but the same draws tax when used for non-agricultural purposes.

The memorandum also wanted the government to delink CIBIL score from agricultural loan. Mr. Shanthakumar told media persons that farmers tend to default on timely repayment due to the vagaries of nature. But this has a negative bearing on CIBIL score which reduces their probability of qualifying for loan.

The memorandum also mentioned that agricultural land belonging to farmers was being confiscated by financial institutions under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SURFAESI Act) on grounds of non-repayment of loan.