Quick Summary
Farmers Bear Burden as Rig/Borewell Operations Face Ambiguity in GST Treatment In a recent development, the Rig Owners and Agents Welfare Association in Madurai voiced concerns over the lack of clear guidelines from the government regarding the exemption of rig and borewell operations used for agricultural activities from the Goods and Services Tax (GST). As a consequence, farmers find themselves burdened with an 18% GST on these essential operations. According to the association members,
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FAQ :
The association is seeking clarity from the government on the Goods and Services Tax (GST) treatment for rig and borewell operations used in agricultural activities.
Farmers are currently burdened with an 18% GST on rig and borewell operations, which are essential for their agricultural activities.
The association argues that rig and borewell operations directly linked to agriculture should be reclassified under the 5% GST slab.
They are also advocating for a one-time amnesty scheme for rig and borewell operations since the implementation of GST.
Clear GST guidelines are needed to support the agricultural sector, ensure water access for farmers, and provide relief to stakeholders involved in these essential operations.
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