Haryana Requests GST Exemption for Crop Residue Management Tools

Synopsis
Key Takeaways
- GST exemption request for crop management tools.
- Reduction in stubble burning incidents by 39%.
- Action plan for 2025 includes Rs 200 crore subsidy.
- Modern technology adoption by farmers.
- Emphasis on reducing air pollution.
Chandigarh, March 18 (NationPress) Haryana's Chief Minister Nayab Singh Saini has formally requested a waiver of the Goods and Services Tax (GST) on 10 essential agricultural tools designed for managing crop residue.
In a letter directed to Union Finance Minister Nirmala Sitharaman and Union Agriculture Minister Shivraj Singh Chouhan, he emphasized the vital role that Haryana's farmers play in sustaining the country's food supply, positioning the state as a frontrunner in the agricultural domain.
“Stubble burning has emerged as a significant problem in recent years, severely affecting public health. This critical issue is under the vigilant observation of the Supreme Court and the Air Quality Commission,” the Chief Minister remarked, noting that farmers in the state are increasingly adopting modern technologies and utilizing advanced agricultural tools for effective crop residue management.
In recent years, both the central and state governments have been offering subsidies for machinery related to crop residue management.
“In 2024, there has been a notable 39 percent decline in stubble burning incidents compared to 2023,” Saini pointed out.
To further combat this challenge, he revealed that the state government has formulated an action plan for 2025, which includes a budget allocation of Rs 200 crore for the acquisition of crop residue management machinery. The projected total expenditure on these machines is approximately Rs 500 crore, with farmers facing an additional burden of around Rs 60 crore due to the GST (12 percent).
The Chief Minister has appealed to the Ministry of Finance and Corporate Affairs for a GST exemption on rotavators, disc harrows, cultivators, zero drills, super seeders, straw balers, hay rakes, slashers, reaper binders, and tractor-mounted spray pumps. He stressed that if the Central government approves this exemption, it will motivate farmers to embrace these technologies more broadly, thereby aiding in the reduction of air pollution caused by crop residue burning.