HYDERABAD: Farmers have to pay Goods and Services Tax (GST) on the minor irrigation components including sprinklers and drips provided by the state government. The GST on minor irrigation components is 18 per cent. Hitherto, the tax on these items are five per cent and the state government has been reimbursing the same.
After the introduction of GST, state government has decided to reimburse only 5 per cent of the amount up to a maximum of J5,000 and the remaining 13 per cent of the GST has to be borne by the beneficiary farmers. According to a GO issued by agriculture secretary C Partha Sarathi, the state government has decided to continue the existing system of reimbursing 5 per cent tax.