With no clear notification or guidelines from the government regarding exempting rig/borewell operations used for agricultural activities from GST, farmers were forced to bear the huge burden of paying 18% GST, said Rig Owners and Agents Welfare Association, Madurai. In a petition submitted to the Prime Minister and the Finance Minister, the association members said as 90% of borewell operations were for agricultural activities, it should be brought under the 5% GST slab. Diesel was the main fuel for rig operation. But with various issues involved in bringing petrol and diesel under GST bracket, the recently held GST Council meeting did not issue any clear notification regarding rig operations for agricultural purposes, they said. The petition also sought a one-time amnesty scheme for rig/borewell operations since the implementation of GST, said the President of the association.

Source: The Hindu November 23, 2023 10:36 UTC