Days ahead of the Union Budget, agri-warehousing companies have sought waiver of the 18% GST imposed on such services to boost the farming community.
Paran Dass, Transportation Director of Japanese warehousing major Kawasaki Rikuso said that the Centre should relook at the GST on agri- warehousing services as it is raising the cost of farmers. IHe added that the government should waive the GST on this sector as such waiver will encourage farmers to store their produce and prevent distress sale. KRT has set up a solar agri-warehouse in the state, which is used by the West Bengal Agriculture Department.
Sohan Lal Commodity Management Group CEO Sandeep Sabharwal said the GST waiver is a long-standing demand of the agri-warehousing industry. He stated that the leases of these warehouses are treated as commercial ones, and has an 18 per cent GST implication while the output services are devoid of any GST and eventually, the customers’ cost increases. This often leads to loss of business for the organised sector, as consumers prefer unorganised players who often do not pay GST.
