Micro irrigation industry lobbies for low tax slab

NEW DELHI: Micro irrigation companies are unsure about their tax liabilities in the good and service tax regime and hence lobbying for a low GST slab, saying it’s crucial for Prime Minister Narendra Modi’s ‘per drop more crop’ initiative.

Micro irrigation has not been notified in the GST list that has been released, and industry insiders said they fear it could be in 18% or 28% slab.

Transport minister Nitin Gadkari said he has taken up the issue with the finance ministry after receiving a representation from the drip irrigation industry.

“Their concerns are genuine and I have flagged it to the finance minister as well because irrigation is key for solid growth of agriculture in the country,” he told ET. “I have written to the FM saying that it should be notified in the 5% slab.”

The industry has also made representations to agriculture minister Radha Mohan Singh and the finance ministry among others.