New Delhi: On 19th Sept 2020 Mr Sujeeet Kumar MP, BJD on a special mention in Rajya Sabha had requested central govt to reduce the GST on Kendu Leaves to 5% from 18%.
Details fo Request:
This is to bring into your kind consideration on the plight of more than 1 Crore Kendu Leaf Workers across India who have been suffering right after the implementation of GST w.e.f. 1st July 2017, where 18% GST is being levied upon Kendu (Tendu) leaf produce.
Before GST, tax component on the sale of Kendu Leaf varied from 4% to 6% in Odisha.
Due to increase in GST, the average sale price has reduced drastically from Rs. 24,110/- per quintal during 2016 crop per year to Rs. 18,011/- during 2018 crop year. This has severely affected around 10 lakh Kendu leaf workers in the state of Odisha where majority of them are tribal and women workers wherein they constitute about 80% of the work force.
Moved by the plight of Kendu Leaf Pluckers, Hon’ble Chief Minister of Odisha, Shri Naveen Patnaik requested to Late Shri Arun Jaitley, the then Union Finance Minister in 2018 vide DO No. UM-4/2018-124/CM dated 29.11.2018 to reduce the GST rates on Kendu Leaf.
Also, the same request was also brought into the attention of Smt. Nirmala Sitharaman, Union Finance Minister in 2019 vide DO No. UM-6/2018-132/CM dated 17.12.2019.
Yet, no GST reduction was done on Kendu Leaf produce.
In this COVID-19 pandemic situation, the livelihood of Kendu Leaves Workers is severely affected. If GST reduction is considered, it will provide benefit to more than 1 Crore such workers across India.
I request you to place the matter in the next meeting of GST Council for consideration to reduce the existing GST rate of 18% to 5% on the Kendu Leaves.
Report: Odisha1 TV Bureau
