Agri input makers seek tax exemption on R&D expenses; cut in GST, customs duty on agrochemicals.

 

CropLife India, an association of 16 R&D crop science companies, has suggested uniform basic customs duty of 10 per cent for both technical raw materials and formulation.

Agri input makers are looking forward to tax exemption on their R&D expenses and a cut in GST and basic customs duty for agrochemicals in the upcoming Union Budget.

“As India is likely to become the most populous country this year, and has ambitions to be a major food supplier to the world, the need of the hour is to ensure higher productivity with minimal environmental impact. The investment made in agricultural research and development (R&D) pays back many times over in the form of increased production or mitigated losses, as well as higher incomes for farmers.

Tax credits for charity spending by businesses may go.

 

The government is likely to introduce amendments to Goods and Services Tax (GST) law through the Finance Bill, 2023, denying businesses credit for the taxes paid while procuring goods and services that they provide to the community under their corporate social responsibility (CSR) obligations.

This would mean that the taxes that are part of the goods and services used in CSR activities cannot be adjusted against the company’s overall GST liability, according to two persons aware about discussions in the Central government. “This would be a major change to the GST law," said one of the persons. The plan is to amend sections in the GST Act (16 and 17) dealing with input tax credit or ITC.

Traders' Body Terms GST One of Most Complicated Taxation System, Urges FM for Review.

 
Terming GST one of the "most complicated" taxation system, Traders' body Confederation of All India Traders (CAIT) has urged Finance Minister Nirmala Sitharaman to announce review of GST taxation system and all Acts and Rules concerning retail trade and One Nation-One Licence Policy for domestic trade. 

In its pre-Budget wishlist, it has also urged for effective pension scheme for traders, insurance scheme for traders as per scheme applicable in state of Uttar Pradesh.

The traders' body also sought separate credit rating norms for small businesses, easy access of finance to traders by the Banks and other financial institutions, formation of Fast Track Courts for disputes including payments in businesses and dishonouring of cheques under section 138 of the Income Tax Act and creation of Special Trade Zones in the country.

Uttar Pradesh street vendor charged with Rs 366 crore GST fraud.

 

A 40-year-old man in Uttar Pradesh who makes ends meet by selling clothes on the streets of Muzaffarnagar with a turnover of roughly Rs 500 per day was shocked to find GST officials knocking on his door and charged with amassing Rs 366 crore through tax fraud.

Taken aback by the allegations, Ejaz Ahmad, the street vendor, has approached GST officials and other "higher authorities" to intervene in the matter.

T.N. among top five States receiving GST compensation, says RBI study.

Tamil Nadu was among the top five GST compensation receiving States during the five-year transition period from July 2017 to June 2022, according to a study by the Reserve Bank of India (RBI).

T.N. received a compensation of about Rs. 40,000 crore. At least 10 States may fall short of the expected 14% GST growth, says the study. Puducherry, Punjab, Delhi, Himachal Pradesh, Goa and Uttarakhand likely to be most affected by the end of the compensation regime.