The Laghu Udyog Bharati – Gujarat has sought a reduction of GST from 18% to 5% for submersible pumps.
The Association said the more than 90% of submersible pumps (HSN: 84137010) are used in the agricultural sector for irrigation and drinking water supply. The GST Council has considered these pumps under industrial-use classification. But, submersible pumps have no industrial application and are used only to pump water from borewells in rural areas.
Submersible pumps attracted 2% tax prior to VAT, which increased to 5% under VAT. When GST was introduced, these pumps came under the 12% slab. Since 2022 the GST on submersible pumps has been 18%. While most agricultural inputs and machinery have been rationalised to the 5% slab, submersible pumps are placed under the higher bracket, which is contrary to the interest of farmers, it said.
Lower GST will reduce the irrigation costs, improve farm productivity, and reduce dependence on expensive alternatives, it said.
Source from: https://www.thehindu.com/business/demand-to-reduce-gst-on-pumpsets/article70057627.ece
