Rig owners and Agents Welfare Association seek clarity on GST

In a petition submitted to the Prime Minister and the Finance Minister, the association members said as 90% of borewell operations were for agricultural activities, it should be brought under the 5% GST slab.

Pointing out that they were indirectly contributing towards the development of the nation by helping the farmers get water, their main resource for cultivation, the association members said during the service tax regime there was clarity regarding applicability of the tax for rig/borewell operations used for agricultural activity.

Diesel was the main fuel for rig operation. But with various issues involved in bringing petrol and diesel under GST bracket, the recently held GST Council meeting did not issue any clear notification regarding rig operations for agricultural purposes, they said.

The petition also sought a one-time amnesty scheme for rig/borewell operations since the implementation of GST, said the President of the association.

 

Source - https://www.thehindu.com/news/cities/Madurai/rig-owners-seek-clarity-on-gst/article67562367.ece