Yanamala cautions against zero-rating of fertilizers

By TheHindu on 05 Nov 2016 | read

Finance Minister Yanamala Ramakrishnudu cautioned against zero-rating of fertilizers and pesticides under the GST regime on the ground that it would result in refund of taxes to manufacturers and traders of those goods / commodities.

He was talking on the proposed exemption of fertilizers and pesticides from GST, during the second day’s proceedings of the GST Council meeting in Delhi on Friday.

According to an official release, Union Finance Minister Arun Jaitley stated that the issue would be examined by the officers’ committee.

On the issue of cross empowerment or dual control on GST administration, Mr. Ramakrishnudu reiterated A.P.’s stand that taxpayers with annual turnover below Rs.1.50 crore be exclusively administered by the states and dual control confined to dealers whose turnover was in excess of Rs.1.50 crore.

He reminded that the Empowered Committee of State Finance Ministers had unanimously recommended this model of dual control and it should be honoured by the GST Council.