Union Budget 2021 Update: CropLife India Demands GST rate cut on Agrochemicals and Inter-state ITC adjustment

Industry demands GST rate cut on Agrochemicals from 18% to 12% along with boost for R&D from this Union Budget 2021

Every industry in this budget season has been raising its demand to the government as to what do they wish from the budget this year. Due to the pandemic and the consequent business slowdown has forced each industry to seek relief from the government.

CropLife India has demanded for the GST rate cut on agrochemicals to 12% per cent in soon to be announced Union Budget 2021.

Industry body, CropLife India, has stated by issuing a statement today on 21^st January that reduction in the GST rate on agrochemicals would reduce the prices of agrochemicals which in turn would help farmers.

Currently the GST rate levy on agrochemicals is of 18%.

It has also requested the government to allow for the adjustment of ITC of one state against the tax liability of other state. Since GST is a central tax, therefore inter state adjustment of GST input tax credit should be allowed. This would simplify the GST compliances as per Asitava Sen, CEO of CropLife India.

The other request from the industry body was the government should provide 200% weighted deduction on R&D expenses incurred by agrochemical companies. The stress and focus on Research and development would benefit the whole farmer community of the nation.

Asitava Sen further stated that the government may extend this benefit to those units which are having minimum fixed assets of Rs. 50 crore and incurring the expenses of Rs. 10 crores.

There has also been demand from the government to maintain uniform 10% basic custom duty on both technical raw materials and finished products.

CropLife India is a non-profit oriented organisation for research and development driven member companies working for crop protection.

Union Budget 2021 to be presented on 01^st February by finance minister Nirmala Sitharaman is quite awaited with lot of expectations. This would be the first budget after the pandemic and lockdown. The budget is expected to provide impetus to the economy and required boost to the business struggling from the pandemic impact.