Union Cabinet put its seal on the ambitious Constitutional amendment act on GST late Wednesday and the bill is likely to be introduced in the ongoing Parliamentary session.
IFFCO Managing Director Dr U S Awasthi tweeted “ #IFFCO welcomes introduction of #GST. Expects #Agriculture Products to be part of it so that #Farmers will be free of #APMC&#MANDI act.”
It is no secret that the labour-intensive produce of farmers fail to get just return in want of market. Several efforts in the past to float marketing cooperatives have though helped in some cases, broader issue of “market for farmers” has failed to elicit any comprehensive response from the government.
GST aims at rationalizing state and central indirect taxes into a harmonised goods and service tax (GST) where the inter-state barriers would go away thereby setting stage for a uniform all-Indian market. Experts see a big boost to economic activities in the wake of implementation of this Act.
Finance Minister Arun Jaitley brokered a compromise with states by allowing them to charge additional 1 to 2 per cent GST to cover up for losses. This provision will be available only for two to three years.