In a resolute effort to support the state’s apple growers, Industries Minister Harshwardhan Chauhan has advocated for a reduction in the Goods and Services Tax (GST) on apple carton boxes. During the 50th GST Council meeting held in New Delhi and chaired by Union Finance Minister Nirmala Sitharaman, Minister Chauhan voiced his concerns and sought relief for the apple industry.
Contrary to the recommendations of the fitment committee, which expressed difficulties in administering end-use-based concessional rates, Minister Chauhan emphasized the need to reevaluate the issue. His main focus was to alleviate the burden of GST on apple carton boxes, a critical component of horticulture packaging for apple growers in the state.
Supported by extensive research and a detailed presentation, Minister Chauhan highlighted the significant role of the apple industry in the state’s economy. He underscored the importance of reducing the tax burden on apple cartons to provide relief to farmers and promote the growth of this vital sector.
In response to Minister Chauhan’s arguments, Chairperson Sitharaman directed the fitment committee to revisit the issue and include it in the agenda of the next Council meeting. This directive signifies a significant step forward in addressing the concerns of apple growers and industry stakeholders grappling with the high GST rate on carton boxes.
Additionally, Minister Chauhan drew attention to the loss of substantial revenue for Himachal Pradesh due to purchases made by its residents in neighbouring markets of other states. Currently, these purchases are not recognized as inter-state transactions with the place of supply designated as Himachal Pradesh. This oversight has resulted in the state being deprived of its rightful revenue on the sale of vehicles and other goods to its residents.
Minister Chauhan passionately argued that purchases made by Himachal Pradesh residents in neighbouring states should be treated as inter-state transactions, with Himachal Pradesh identified as the place of supply. Rectifying this situation would enable the state to regain its fair share of revenue, ultimately contributing to improved financial stability and the provision of enhanced public services to its citizens.
Furthermore, during the Council meeting, a crucial decision was made to ensure that taxes collected on over-the-counter purchases above Rs. 50,000 made by consumers of one state in another would flow to the destination state. This decision was unanimously agreed upon by the Council members as it aimed to rectify the previous scenario where GST revenue from consumer purchases in neighbouring Punjab, Haryana, and Chandigarh did not reach Himachal Pradesh. Implementing this decision is expected to significantly increase the state’s GST revenue collection, providing a much-needed boost to its finances.
