New Delhi, July 13 (KNN) Aiming at getting the tax rates on select agricultural inputs lowered, industry body ASSOCHAM has urged for the revision of GST rates keeping in view that most of these products are produced by micro, small and medium enterprises (MSMEs).

In a letter to the GST Council, the industry body has requested for a revision on tax rates on items including biofertilisers, biopesticides/biological control agents (BCA) and branded organic manure/vermicompost/ farmyard manure (FYM), most of these products being produced by the Micro, Small and Medium Enterprises (MSMEs).

Under the GST, biofertilisers are placed in 12 per cent tax slab whereas branded organic manure is places under 5 per cent tax slab.

While the items are placed under such high tax slabs by the GST council, there is a tax exemption on the same items in many states including West Bengal, Sikkim and Uttarakhand

The industry body said emphasized such high tax rate would discourage the use of these organic inputs that are very important both in terms on the productivity as well as for maintaining the environment. It further projects that in case the revision of tax rates is not done, this might lead to an increase in the use of chemical inputs which might prove to be harmful in the long run. (KNN/ DA)