Maharashtra GST department to act on sale of bogus fertilizers

AURANGABAD: The state good and service tax office has decided to undertake intensive inspection to keep a check on sale of bogus fertilizers in Aurangabad which causes a loss to the tax department.
In a letter dated June 4 sent to the agriculture director and joint commissioner of GST Bhavan, secretary MNS Paithan Taluka Vilas Jagdale and Aurangabad district chief Vijay Chavan had complained to both departments about the sale of bogus seeds and fertilizers directly responsible for farmer suicides.
Referring to the action taken by agriculture department in Gangapur Taluka against marketing of bogus fertilizer worth Rs 3.5 lakh, the party unit stated that such practices cause financial losses to the farmers which leads them to the extreme step of ending their life. While the seeds are tax free, a GST of 5% is charged on fertilisers.
Jagdale, a homeopathic doctor and a farmer himself, said that the crop loss cannot solely be credited to water scarcity. “For example, cotton is a crop for regions with dry weather. The crop yields better in drier areas than in water sufficient areas. However, it is due to the poor quality of seeds and fertilizer which causes huge losses to cotton farmers,” he said.
The MNS activists met with the state GST officials and informed them about the problem. Speaking to TOI, Santosh Shriwastav, deputy commissioner, state GST, confirmed that the department will hold confidential enquiry to find out about the sale of products without the payment of GST. “I have forwarded the matter to joint commissioner, state tax Aurangabad division. Subsequently, our inspectors will verify the books of accounts of the seed and fertilizer dealers and impose penalty if tax evasion is found,” Shriwastav said.
The penalty would include tax collection under the jurisdiction of Aurangabad division state GST office which has districts like Aurangabad, Jalna and Beed districts under them.