MP Wadiyar Advocates for Pepper GST Exemption Amid Farmer Concerns

Lok Sabha MP Yaduveer Krishnadatta Chamaraja Wadiyar has urged Finance Minister Nirmala Sitharaman to maintain GST exemption for black pepper, essential for farmers in Karnataka. Wadiyar highlights that GST on pepper could increase costs, reduce profits, and impact exports, advocating for a classification revision to exempt dried pepper.

Lok Sabha MP Yaduveer Krishnadatta Chamaraja Wadiyar has written to Finance Minister Nirmala Sitharaman to urge the continuation of a GST exemption for black pepper. Wadiyar met the Finance Minister to discuss the hardships faced by farmers in the Kodagu, Hassan, and Chikmagalur districts due to recent GST notifications.

In his letter, Wadiyar specified that pepper growers in his Mysuru constituency received notices requiring them to register under the GST Act or risk being taxed for their pepper sales. He stressed that the drying process, used to preserve pepper, should not alter its classification as an agricultural produce exempt from GST.

Wadiyar warned that imposing GST on pepper could have adverse effects, including increased costs, reduced profit margins, job losses, and a negative impact on exports. He requested a separate HSN code for dried pepper to secure its GST exemption.

(With inputs from agencies.)