Union Budget 2021 India: Industry body CropLife India has demanded to reduce GST rate on agrochemicals in the budget of 2021-22.
Indian Union Budget 2021-22: Industry body CropLife India has demanded to reduce the GST rate on agrochemicals in the budget of 2021-22. CropLife India has requested that the GST on agrochemicals be reduced to 12 per cent. The industry body has issued a statement saying that the reduction in Goods and Services Tax (GST) will reduce the prices of agrochemicals and benefit the farmers. Currently, GST is levied on agrochemicals at the rate of 18 per cent. CropLip India is an association of companies with research and development regarding crop protection. Finance Minister Nirmala Sitharaman will present the Union Budget for the financial year 2021-20 on February 1 and the budget session will start from January 29.
Demand for equal duty on raw and final products
CropLife India CEO Asitav Sen has demanded that the government should ease the GST rules. Sen says that if GST is Central Levy, then companies should be allowed to adjust the input credit of one state to a tax-payable condition in another state. CropLife India has demanded that the government should impose a uniform duty of 10% on technical raw materials and finished products (finished products).
Demand to promote R&D
CropLife India has urged the government to focus on research and development (R&D) in the budget. Agrochemicals companies have been requested to pay 200% deduction on the expenditure incurred on R&D. The industry body believes that farmers will also benefit from this. Sen said that the government can give its benefit to those units whose minimum fixed assets are more than Rs 50 crore and the incurring expenditure is more than Rs 10 crore.