Union Budget 2021: Industry body demands GST rate cut on agrochemicals, focus on R&D

Union Budget 2021: Industry body demands GST rate cut on agrochemicals, focus on R&D

Union Budget 2021: Industry body demands GST rate cut on agrochemicals, focus on R&D

New Delhi: Industry body CropLife India on Thursday demanded that the government reduce GST rate on agrochemicals to 12 percent in the forthcoming Union Budget.

In a statement, the industry body said slashing the rate of goods and services tax (GST) will help lower the prices of agrochemicals and benefit farmers.

The current GST rate on agrochemicals is 18 percent. “The government should also simplify requirements under GST by allowing companies to adjust input credit of one state against the tax payable situation in another state as GST is a central levy,” CropLife India CEO Asitava Sen said.

Besides, the industry body urged the government to focus on research and development (R&D) by providing 200 percent weighted deduction on R&D expenses by agrochemical companies, which would benefit the farmers across the nation. "The government may consider providing this to those units who have minimum fixed assets of Rs 50 crore and incurring expenses of Rs 10 crore," Sen said.

The industry also demanded that the government maintain an uniform basic customs duty of 10 percent on both technical raw material and finished products. CropLife India is an association of research and development-driven member companies in crop protection. The Union Budget will be presented by Finance Minister Nirmala Sitharaman on 1 February. The Budget session of Parliament will start on 29 January.