Agri-warehousing companies seek GST waiver ahead of Union Budget

Days ahead of the Union Budget, agri-warehousing companies have sought waiver of the 18 per cent GST imposed on such services to boost the farming community. “The Centre should relook at the GST on agri-warehousing services. It is raising the cost of farmers. I think the government should waive the GST on this sector,” said Paran Dass, Transportation Director of Japanese warehousing major Kawasaki Rikuso.

The waiver will encourage farmers to store their produce and prevent distress sale, Dass told PTI.

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.

“The leases of these warehouses are treated as commercial ones, and has an 18 per cent GST implication. On the contrary, output services are devoid of any GST and eventually, the customers’ cost increases,” he said.

This often leads to loss of business for the organised sector, as consumers prefer unorganised players who often do not pay GST, he said.

Finance Minister Nirmala Sitharaman will unveil the full budget for the fiscal 2019-20 on July 5.