Mysuru MP Yaduveer Wadiyar Seeks GST Exemption on Black Pepper

The MP from Mysuru, Yaduveer Krishnadatta Chamaraja Wadiyar met with Finance Minister Nirmala Sitharaman in New Delhi and demanded that the GST exemption for black pepper be extended.

The MP stated that he met with the Finance Minister and expressed concern over the GST exemption for black pepper, which is a key issue for farmers in Kodagu, Hassan, and Chikkamagaluru districts.

Mr Yaduveer said, “I requested an extension of the exemption, citing its classification as agricultural produce and the probable negative impact on farmers and exports if GST was implemented. I appreciate the Minister’s positive consideration, which will benefit our farmers.”

During their discussion, Mr Wadiyar informed the Finance Minister that constituents from Kodagu had expressed worries regarding notices they received from the GST office in Mysuru suggesting that their pepper sales are subject to GST and that they must register under the GST Act.

The GST notice was issued due to a misunderstanding about the nature of the drying process. According to the growers, the drying method does not change the important pepper characteristics.

It’s a preservation process. Levying GST on products can have a significant negative impact on Karnataka’s plantation districts, as well as Kodagu, Hassan, and Chikkamagaluru districts, as well as Kerala and Tamil Nadu growers. It led to price increases, lower profit margins, and possibly job losses.

In a memorandum to the Finance Minister, the MP further stated that it might have a negative influence on exports, reducing India’s competitiveness in the global market.

Mr Wadiyar suggested that in addition to drying green pepper on the estate to boost storage capacity, this dried pepper might be assigned a separate HSN code and be exempt from GST. Since it is an agricultural produce, this will benefit farmers, and there are existing HSN codes for black and green peppers.

MP stated that farmers are requesting your assistance for the agricultural community and an effective decision on the case.