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Impact of GST on Agriculture


Goods and services tax, also known as GST, is a tax applied to the manufacturer's supply of goods and services to the consumer. The agriculture sector is the largest contributing sector in most countries. The implementation of GST will affect many other sections of society. 


GST is one of the largest contributors to the Indian economy. Moreover, making up more than 16% of their GDP. A state VAT applies to all agricultural goods. However, food items like sugar, rice, salt, flour, and wheat are exempt from VAT tax laws. Under the current rules, agricultural products go through a lot of licensing and some indirect taxes.


A GST is for anyone who cultivates on land either by their labor or by the help of family.  A small number of farmers do not have to worry about this tax; anyone who runs a company in the agriculture sector has to pay this tax. 


GST is a consumption-based tax, and any farmer or an agriculturist has to pay this tax whenever someone purchases the product. Therefore when an agriculturist buys a product on which GST is imposed, they are also liable. Besides, the farm management system is of great help to deal with GST.


Impact of GST


It is essential to have GST improve the reliability, transparency, and timeline of the supply chain mechanism. An enhanced supply chain will prove useful in reducing waste and cost to the farmers/retailers. GST will also reduce the cost of heavy machinery, which is essential in the agriculture sector. 


Dairy farming, poultry farming, and stock breeding does not form part of agriculture's definition under the GST law. Fertilizers play an essential role in agriculture. It was previously taxed at 6 percent; however, after GST, the cost has increased by 12%. The same thing applied to tractors as well. 


A tax of 18 percent is mandatory on pesticides for 12 percent. While tractors are under 28 percent, GST on pumps has decreased from 18 to 28 percent. Products that are highly used, such as wheat, milk, and rice, don't have any GST. The same goes for vegetables and fresh fruits. But a tax of 12 percent and 18 percent have been imposed on dry fruits. 


Moreover, frozen products such as frozen vegetables and preserved fruits are under 5 percent GST. Processed food like fruits and vegetable juices are under a 12 percent tax from 5 percent, and jams, marmalades, and jellies have a higher tax at 18 percent.


Positive Impact of GST


  • The input tax credit provides a transparent and hassle-free supply chain, leading to a free commodity movement.

  • GST is obligatory when a product is sold and not when a product is in the production process.

  • Reduced transportation time will also help the agriculture market since under a single rate, the transportation will become hassle-free.

  • GST has included tax-related to cereals and oilseeds; this will benefit the consumers by eliminating the negative impact on these products' trade.


Negative Impact of GST


  • A hike in the prices of agricultural products.

  • A double tax burden.

  • The burden of taxes passes on to the farmers in the form of higher costs on storing foods. They are increasing the value of agricultural produce.

  • Imports of equipment now attract 18 percent GST, including the 5 percent duty tax. It will lead to an increase in prices.

  • The construction of warehouses which were earlier exempted from taxes now has GST imposed on it. The rising cost of storage and warehouses will be an added burden on the people related to the agriculture sector.


Initially, the GST creates many problems for individual districts, but gradually, the difficulties start subsiding. Some people will face revenue loss, but GST is beneficial for many farmers, cultivators, traders, and distributors in the long run. It is mainly for farmers to sell products at the best available price. However, a farm management system is of great help to reduce any potential loss in the business.




An increase in GST is inevitable because of inflation; however, the implementation of taxes will benefit many farmers and distributors in the long run. GST is said to have both negative and positive impacts. Tea, milk, and fertilizers will be negatively affected by it, which are very popular commodities. 


When GST is a must on milk prices, it will not be welcomed by consumers since it is an essential commodity in everyone's day to day life. Agricultural products are subjected to diverse taxation rates as a single rate of goods will help the farmers and traders to be able to sell their products effectively wherever they wish within their country.

The Importance of a Home Insurance in Fort Worth
The Importance of a Home Insurance in Fort Worth
  \ In Texas, it is compulsory to buy insurance for your house. This is because it protects your most valuable possession - your property. Fort Worth is one of the best places in Texas where you can buy a home. Many new-age homeowners are not aware of the importance of Home insurance in Fort Worth. This article will discuss all the important factors to consider when purchasing homeowners insurance in Fort Worth, Texas. First, let us have a look at the basics.
What is homeowners insurance?
Homeowners insurance policies cover your property in the event of any unfortunate events, such as fires, thefts, or natural disasters, that might befall your home. A homeowners insurance policy provides financial protection and peace of mind against potential losses associated with your home. It's important to remember that having the right policy can ensure that you're adequately protected. Understand that there's no such thing as 'too much insurance.' Choosing the right homeowners insurance policy is one of the most important decisions a homeowner will make. There are a variety of factors to consider, including building materials, personal property, and replacement costs, that will determine the right level of coverage for a given home. Homeowners insurance is a type of property insurance policy that typically covers the structure and some personal property of a home, as well as liability and environmental risks. The primary benefit of this type of insurance is to protect against losses due to catastrophes such as floods, fires, earthquakes, and windstorms. Contents of the insurance policy typically include coverage against bodily injury and property damage, as well as liability protection.
Why do you need homeowners insurance?
A Texas homeowners insurance policy is necessary to have, especially if you're looking for protection in case of a disaster. This policy offers many advantages, such as the ability to replace your home and its contents in the event of damage or loss. Safety is important for all areas of your home, which is why these great lifeguards may be just what you need. They can offer more safety by looking after children, people with heart conditions, and people who might be on medications that make them feel sleepy. The importance of a home insurance policy should not be underestimated. It provides financial protection and security against potential losses associated with the property, including any additions or improvements that were made in the home. 
Different people will require different levels of liability coverage. It is dependent on your living arrangements and the sort of damage that can arise if someone lives with you in your house. If you feel like this may be too complicated and are looking for someone to help you settle on what's right, we're here to help: one call can do the job!  We know that there are a lot of things to consider when choosing home insurance for your Texas home. That's why we have expert Texas insurance agents on our team and are ready to talk with you about finding the best solutions for your needs.
Home insurance Fort Worth property coverage
You should always consider property coverage when assessing homeowners insurance policies. This usually covers the cost of repairing or replacing damages due to fire, flood, theft, etc. This includes any additions and improvements that were made to your house before the catastrophic event. For example, if your home and its contents are destroyed in a fire and you have a $125,000 insurance coverage limit, then you're eligible for up to $125,000 for building or purchasing a new one. Take a look at getting an insurance policy that covers property damage, loss, theft, and all the other risks of owning things.  
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