Haryana CM GST exemption request aims to reduce costs for farmers and curb stubble burning.
In a letter to Union Finance Minister Nirmala Sitharaman and Union Agriculture Minister Shivraj Singh Chouhan, Saini emphasised the need for tax relief on these implements to support farmers and promote sustainable farming practices.
Concerns Over Stubble Burning and Air Quality
Saini highlighted that Haryana plays a role in the nation’s food reserves, with its farmers leading in agricultural productivity. However, he pointed out that stubble burning has become a critical issue, severely affecting public health. The matter is under close scrutiny by the Supreme Court and the Air Quality Commission, underscoring its environmental and health impact.
Government Support and Reduction in Stubble Burning
The Chief Minister noted that Haryana’s farmers are increasingly adopting advanced technology and modern agricultural equipment for crop residue management. Over the past few years, both the central and state governments have been providing subsidies to encourage the use of machinery for this purpose.
In 2024, Haryana recorded a 39% decline in stubble burning incidents compared to 2023. To further address the issue, the state government has developed an action plan for 2025, including a subsidy allocation of approximately ₹200 crore for purchasing crop residue management machines. The total cost of these machines is estimated to be around ₹500 crore, with farmers expected to bear an additional ₹60 crore due to the 12% GST, Saini mentioned in his letter.
Appeal for GST Relief on Farm Equipment
Saini has urged the Ministry of Finance and Corporate Affairs to waive GST on essential agricultural implements used for crop residue management. The requested exemption includes rotavators, disc harrows, cultivators, zero drills, super seeders, straw balers, hay rakes, slashers, reaper binders, and tractor-mounted spray pumps.
He stressed that removing GST on these machines would encourage more farmers to adopt eco-friendly residue management technologies. This, in turn, would significantly help in reducing air pollution caused by stubble burning, a major environmental concern.
Farmers face rising costs in adopting eco-friendly residue management due to GST on essential equipment. With Haryana CM pushing for tax relief, Vakilsearch can help navigate GST regulations and identify available exemptions. Understanding these tax benefits can reduce costs and support sustainable farming practices.
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