Yaduveer Krishnadatta Chamaraja Wadiyar, Mysuru MP, met Finance Minister Nirmala Sitharaman in New Delhi and urged her for the continuation of GST exemption for black pepper.

The MP said he met the Finance Minister and discussed the GST exemption for black pepper, a crucial concern for farmers in Kodagu, Hassan, and Chikkamagaluru districts. “I requested continuation of exemption, highlighting its classification as agricultural produce and potential negative impact on farmers and exports if GST was imposed. I am thankful for the Minister’s positive consideration, which will benefit our farmers,” Mr. Yaduveer said.

During his meeting, Mr. Wadiyar told the Finance Minister that the people from his constituency, primarily from Kodagu, brought to his attention the notices they received from the GST office in Mysuru stating that the sale of pepper grown at their plantation is subject to GST and that the planters also need to be registered under the GST Act.

“The GST notice stems from a misunderstanding about the nature of the drying process. The growers said the drying process does not alter the essential characteristics of pepper. It is primarily a preservation technique. The imposition of GST on the products could have significant negative consequences for the plantation districts of Karnataka, including Kodagu, Hassan, and Chikkamagaluru districts, as well as growers in Kerala and Tamil Nadu. It could lead to increased costs, reduced profit margins, and potential job losses. Additionally, it could negatively impact exports, reducing India’s competitiveness in the global market,” the MP said, in a memorandum to the Finance Minister.

Mr. Wadiyar said that further to drying green pepper at the estate, to enhance its storage capacity, this dried pepper could be given a separate HSN code and exempt from GST applicability. “Since it is an agricultural produce, this would be of great help for farmers and there are already HSN codes available for black and green peppers.”

The MP said farmers are looking forward to your continued support for the agriculture community and favourable intervention on the matter.

Source: The Hindu