Agricultural products such as pulses and grains are kept away from the ambit of the GST. Though the 5% GST on oilseeds has enhanced the woes of the producers manifold.
This new tax structure has led manufacturers of oil seeds into a distraught as it will lock up their major chunk of investments and they will partially able to recover the tax they paid on input from the output edible oil and de-oiled cake or DOC, a byproduct of edible oil manufacturing used as animal feed.
As informed by Davish Jain, President, Soyabean Processors Association of India, the industry was expecting oil seeds under nil rate of tax, - to a leading business daily.
The primary list of GST includes oilseeds under 5% tax bracket. But of the 2 products manufactured after crushing oilseeds, only edible oils will attract 5% GST and DOC, the 2nd product, has been put in the nil tax category.
Oilseeds used for seed purpose have been exempted from taxation.
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