This document provides an overview of goods and service tax (GST) in India, including: 1) It outlines the traditional, VAT, and GST tax regimes in India. 2) It discusses the agriculture sector prior to GST and implications of GST on agriculture. 3) It explains key concepts of GST like meaning, rationale, rates, and features using a hypothetical example. 4) It covers international experiences with GST and frequently used terms.

1. C

2. 1) Major Tax Reforms in India
i. Traditional Tax Regime,
ii. Value Added Tax Regime, and
iii. Good & Service Tax Regime
2) Agriculture Sector Prior to GST Regime
3) Goods and Service Tax
i. Meaning of GST and Rational for it
ii. Working Model of GST in INDIA
iii. Tax Rate Under GST
iv. Illustration of working of GST model (With a hypothetical
example)
v. Features of GST
4) Implications of GST on Agricultural Sector
A) On agro-input industries
B) On investments in agro-processing industries
C) On agricultural output
D) On logistic and transportation
E) On international trade
5) Some International Experiences in GST
Outline of Presentation
CONCEPTS
IMPLICATIONS

3. Frequently Used Terms in Seminar
 VAT : Value Added Tax
 GST : Goods and Service Tax
 Input Tax Credit / Set off : Credit obtained against payment of taxes on inputs
 Octroi / Entry Tax : Entry tax levied by local bodies/states
 Excise Duty : Tax on the volume of the quantity produce
 Custom Duty : Tax on the import of goods
 MODVAT : Modified VAT
 CENVAT : Central VAT
 Compliance : Easiness/ Simplicity in filing tax returns
 Cascading Effect : Tax on Tax
 Zero Rated Goods/ Services : No tax on goods/services but ITC is admissible
 Exempted Goods/Services : No tax on goods/services & no ITC
 Traditional Tax Regime : Excise & Sale Tax Regime
 Existing Tax Regime : VAT Regime
 RNR : Revenue Neutral Rate

4. Existing Tax Structure in India
TAX ATION
Direct Tax Indirect Tax
Wealth Tax
Others, like-
Entertainment tax
Entry Tax
LuxuryTax
LotteryTax
State VAT/
Sale Tax
Central
Excise
Duty
Service
Tax
Custom
Duty
Income Tax
Levied by
Centre
Levied by
Source: An Insight of Goods & Services Tax (GST) in India,2015

5. Basics of Indirect Taxation
INDIRECT
TAX??
Meaning: Indirect taxes are those whose burden can be shifted to others so
that those who pay these taxes to the government do not bear the whole
burden but pass it on wholly or partly to others.
Indirect taxes are levied on production and sale of commodities and services.
Example: Excise duties on the manufactured products, sales tax, service tax,
customs duty, tax on rail or bus fare, Octroi duty/ Entry tax, entertainment tax
etc. are some examples of indirect taxes.
Levied by:
1. Central Govt.: Excise, Service Tax,
Custom Duties
2. State Govt.: State VAT, Sale Tax,
Entertainment Tax, Octroi/ Entry
Tax, Purchase Tax etc.

6. 2.09
5.81
11.09
11.57
17.78
0
5
10
15
20
1950-51 1970-71 1990-91 2005-06 2014-15
Percent
Tax to GDP Ratio
Direct tax
Indirect tax
Total tax
Importance of Indirect Taxation
Source: Indian Public Finance Statistics, 2014-15
0% 20% 40% 60% 80% 100%
199…
200…
200…
201…
201…
201…
Share of Direct & Indirect Tax in Total Revenue
Direct Tax
Indirect Tax
Others

7. Tax Jurisdiction of Centre and State in Different Tax Regime
Tax Regimes Central Levies State Levies
Excise- Sale Tax Regime Central Excise Duty
(On Manufacturing)
Sale Tax
(On Distribution Chain)
Value Added Tax Regime CENVAT
Service Tax
State VAT/ Local body Taxes
Goods and Service Tax
Regime
CGST and IGST SGST
Based on Presenters understanding of concepts from various literatures on Indirect Taxes in India

8. Major Indirect Tax Regimes in India
Traditional Tax
Regime
Value Added
Tax Regime
Goods &
Service Tax
Regime
Major Taxes: Indirect taxes including customs and
excise.
Revenue from indirect taxes was the major source of tax
revenue.
Cascading effect of taxation
Introduced by Maurice Laure, a French economist, in 1954.
Introduced in India in 2005.
The burden of tax is borne by the final consumer.
Eliminates the cascading effect of traditional tax regime.
Made tax structure simple, hassle free and export oriented.
A single comprehensive tax levied on goods and
services consumed in an economy.
levied at every stage of the production-distribution chain
Also known as Harmonized Sales Tax (HST).
First devised by a German economist during the 18th
century.
Concept appeared first time, in 2006-2007 Union Budget
Speech in India.
Source: 1) Goods and service Tax: A Global Experience
2) Based on Presenters understanding of concepts from various literatures on Indirect Taxes in India.

9. Evolution of Indirect Taxes in India
Mauryan Period
EXCISE DUTY on
liquor, Salt, Sugar,
Leather, Cloth &
Dairy Products
Britisher’s
EXCISE DUTY on
liquor, Salt, Sugar,
Leather, Cloth &
Dairy Products
& Cotton
Widening of Excise
Base
(1917-1943)
Coffee, Tea, Betel Nut
Central Excise Act-
1944
Value Added Tax
April 1st ,2005
GST
Widening of Tax
Base#
MODVAT
1986
#- Based on Presenters understanding of concepts from various literatures on Indirect Taxes in India
We R
Here

10. Current Structure of Indirect Taxes in India
TYPES BASE
No. of
Rates
Rates (%) Description of Commodities
Standard Lower Exempted Lower Rate Higher Rate
GOODS
CENTRE
(Excise)
Manufacturing 8 12.0 6.0 Food
Textile, Mobile
Phones,
Fertilizers. Some
Intermediate
goods
Tobacco,
Petroleum
Products,
Automobiles,
Aerated Water
STATE
(VAT)
Up to Retail 3+ 12.5-14.5 4-5.5
Goods of
local
Importance
Intermediates;
Capital goods,
Gold & precious
metals
Alcohol,
Petroleum,
Tobacco
SERVICES
CENTRE Positive List 11 12.4 4.1
Education,
Health,
Public
Services
Construction,
Work Contract,
Restaurant,
transport, Life
Insurance
-
STATE - None None - - - -
Source: Report on the Revenue Neutral Rate and Structure of Rates for the Goods and Services Tax, 2015
Coconut Oil,
Sattu
(Kerala)
(Bihar)
Extension
Service

11. Treatment of Agriculture Sector in Traditional Tax Regime
FARM PRODUCTS: Fresh Agricultural produce, Fibers,
Livestock Products, Fishery etc. are Exempted for taxation.
AGRO INPUTS: Agro-Chemicals - VAT + CST
Seeds - Exempted from VAT
AGRO-PROCESSED COMMODITIES:
Packaged food: VAT + CST
Dinning Out: VAT + Service Tax
Apart from these indirect taxes, all these commodities attracts some local taxes like -
Octroi/Entry Tax

12. Under the current tax system:-
 The Union excise duties and State VAT applies to
all capital goods,
 Input tax credits are generally limited to
manufacturing plant and equipment.
 No input tax credit is allowed for the State VAT on
capital goods acquired by the service sector
(e.g., telecommunications, “transportation”,
“finance”, “insurance”, and IT services).
Source: Report on the Revenue Neutral Rate and Structure of Rates for the Goods and Services Tax, 2015
Cont
…
INVESTMENT IS
DISCOURAGED
High cost of
capital goods
Discourages the free movement of
goods across state borders
Two per cent (2%) CST on inter-state
sales of goods
 Incremental costs of logistics and
warehousing at multiple locations.
 Inefficiencies in supply chain

13. Services related to agriculture by way of –
(i) Agricultural operations directly related to production of any
agricultural produce;
(ii) Supply of farm labour;
(iii) Processes carried out at an agricultural farm which do not alter
essential characteristics of agricultural produce but make it only
marketable for the primary market;
(iv) Renting or leasing of agro machinery or vacant land with or without
a structure incidental to its use;
(v) Loading, unloading, packing, storage or warehousing of agricultural
produce;
(vi) Agricultural extension services;
(vii) Services by any Agricultural Produce Marketing Committee or
Board or services provided by a commission agent for sale or purchase of
agricultural produce.
Exempted Agricultural Services from Service Tax in India

14. The replacement of the single- point state sales
taxes by the VAT in all of the states and union
territories
Reduction in the central sales tax rate to 2%, from
4%, as part of a complete phase out of the tax
The introduction of the service tax by the
centre, and a substantial expansion of its base
over the year’s, and
Rationalization of the CENVAT rates by reducing
their multiplicity and replacing many of the specific
rates by ad valorem rates based on the maximum retail
price (MRP) of the products
Major Indirect Tax Reforms in India
Source: Poddar S. and Ahmed E., 2009
Goods and Service Tax

15. Traditional Vs VAT Regime (Hypothetical Example)
Traditional Regime
Supply Chain
Cost of
Input
Value of
Output
Tax
Rate
Selling Price Including
Tax Rate
Tax
Burden
Producer 100 150 10%
165
(150+ 10% of 150)
15
Wholesaler 165 180 10%
198
(180 + 10% of 180)
18
Retailer 198 220 10%
242
(220 + 10% of 220)
22
Value Added Tax (VAT) Regime
Supply
Chain
Cost of
Input
Value
of
Output
Value
Added
Tax
Rate
Selling Price Including
Tax Rate
Tax
Burden
Producer 100 150
50 (150-
100)
10%
155
(150+ 10% of 50)
5
Wholesaler 155 180
25 (180-
155)
10%
182.5
(180 + 10% of 25)
2.5
Retailer 182.5 220
37.5 (220-
182.5)
10%
223.75
(220 + 10% of 37.5)
3.75
Price Paid By Consumer = Rs.
242
Price Received By Producer= Rs.
150
Gross Margin in Supply Chain=
Rs. 37
Producers Share in Consumer
Rupee= 61.98%
TOTAL TAX BURDEN ON
CONSUMER = Rs. 55
Price Paid By Consumer = Rs.
223.75
Price Received By Producer= Rs.
150
GVA in Supply Chain= Rs. 112.5
Producers Share in Consumer

16. Net Amount Paid = Rs. 709
Gross TAX Paid = Rs. 139.23
Actual Price of Goods= Rs. 570
Real Life Example of Cascading Effect and Multiple Taxation
in Existing Tax Regime
Value of Goods Consumed = (180+265+125)= Rs. 570
TAXES:
Service Charge @5% on 570 = Rs. 28.50
VAT @ 12.5% on (570+28.50) = Rs. 74.81
Service Tax @ 5.6% on 570 = Rs. 33.52
Swatchh Bharat Cess @ 0.2% = Rs.1.20
Krishi Kalyan Cess @ 0.2% = Rs.1.20
GROSS TAX PAID = Rs. 139.23
NET AMOUNT PAID = 570 + 139.23 = Rs.709
MULTIPLICITY OF
TAXATION

17. Tendency to escape / evade the tax liabilities. As production and
sales continue, the tax burden increases – Govt. tax revenue will
decline
Non- Uniformity in tax rates at different stages of production,–
Increased administrative cost and lack of transparency
Less competitiveness in the domestic as well as international
market.
Households are subjected to heavy tax burden
Flaws in Traditional & Existing Tax Structure
Sale Tax Regime
 Exclusion of many taxes from CENVAT & SVAT.
(ACD, Surcharges , Luxury tax, entertainment tax etc)
 Incomplete consideration of value added chain (VAC below
manufacturing was not accounted)
 Most of the politically sensitive services are not subsumed
 Treatment of goods and services differently
 Difference in tax base across the states
 Cascading Effect Prevails (CENVAT load in SVAT)
 Autonomy of Centre in taxation of services
VAT Regime
Source: First Discussion Paper on Goods and Services Tax In India, 2009

18. Multiplicity
of Tax and
Tax Rates
Cascading
Effect
Lack of
Compliance
MAJOR FLAWS
Exclusion of
Services
Input Tax
Credit only
for limited
Goods
Complex Tax
Structure
Source: First Discussion Paper on Goods and Services Tax In India, 2009
Cont
…

19. Tax
Structure
Direct
Tax
Income
Tax
Wealth
Tax
Indirect
Tax
Intra-
State
CGST
(Central)
SGST
(State)
Inter
State
IGST
(Central)
Proposed Tax Structure in India
Source: www.taxguru.com

20. Picture Courtesy: A Primer on Goods and Service Tax in India, 2011

21. Concept of Goods and Service Tax
GST is not VAT plus
Service Tax
But
Improvement over VAT
1. Broader Tax Base
2. Consideration of complete value added
chain
3. Concurrent Power of taxation on all the
transactions
4. Dilution of concept of goods and services
and emphasis on “Supply”
5. Equal treatment of goods and services
Picture Courtesy: A Primer on Goods and Service Tax in India, 2011
#- Understanding of presenter from various literature on GST
What these Improvements are?#

22. Rational for Goods and Service Tax
1. In Indian Constitution, taxes upon goods and services can be classified under three
lists, namely
a) Union List - Railway, Postal Services etc
b) State List – Land, agriculture etc.
c) Concurrent List - Trade and commerce in food stuffs
Mutually Exclusive
Categories
Overlapping of Central and
State Taxes
i.e. (CENVAT + State VAT)2. Taxing service sector is practically difficult in VAT regime

23. VAT
CENTRAL LEVIES STATE LEVIES
GST
Taxes Subsumed Under Goods and Service Tax

24. GST’s Evolution: An Idea
• L.K. Jha Committee on Indirect Tax Reform
• Transform Union excise duties into a modified value added tax (MODVAT) by converting specific rates into
ad valorem, unifying the rates and providing input tax credit1976
• Tax Reform Committee (Raja Chelliah)
• Centralise all indirect taxes on goods into a single retail-stage VAT levied by the Centre
• Rationalization and gradual expansion of the prevailing MODVAT into a wholesale stage VAT
• Transform the states’ sales taxes on goods into a VAT up to the retail level
• Services were to be taxed separately, and were not supposed to be a part of the input tax credit mechanism
1991
• Report of the Domestic Trade Taxes in India (Amaresh Bagchi)
• A dual or concurrent VAT at central and state levels
• The Central MODVAT was to be converted into a full-fledged VAT up to the manufacturers’ stage,
• States were to transform their cascading-type sales taxes into a full-fledged retail stage VAT on goods
1994-95
• Expert Committee on Taxation of Services (M Govinda Rao)
• VAT on goods and services
• Convert the prevailing sales taxes at the state level into a comprehensive destination-based GST at the retail
level.
• States were to transform their cascading-type sales taxes into a full-fledged retail stage VAT on goods
2001
Source: M. Govinda Rao, Tracing GST’s evolution as an idea in Business Standard dated 19-08-2016, page 11.

25. Chronology of Goods and Service Tax in India
Picture Courtesy: Ernst and Young Company, 2016

26. Source: First Discussion Paper On Goods and Services Tax In India by The Empowered Committee of State Finance Ministers, New Delhi
November 10, 2009,p-33
Working of Goods and Service Tax: A Hypothetical Example
Manufacturer
Wholesaler
Retailer
Consumer
PV of Input= 100
SV of Supply= 150
PV of Supply= 155
SV of Supply= 180
PV of Supply= 182.5
SV of Supply= 223.75
Value
Addition = 50
V A. =
37.5
Value
Addition = 25
GST
RATES
CGST = 05%
SGST = 05%
Supply
Chain
Cost of
Input
Value
Addition
Value of
Supply
Tax
Rate
(CGST +
SGST)
Gross Tax
on Supply
ITC
(10%)
Net Tax
Burden
Selling Price
Including
Tax
Producer 100
50 (150-
100)
150 10% 15 10 5= 15-10 155
Wholesaler 155
25 (180-
155)
180 10% 18 15.5
2.5= 18-
15.5
182.5
Retailer 182.5
37.5
(220-
182.5)
220 10% 22 18.25
3.75= 22-
18.25
223.75
Price Paid By Consumer = Rs.
223.75
Price Received By Producer= Rs.
150
GVA in Supply Chain= Rs. 112.5
Producers Share in Consumer
Rupee= 67.03%

27. Features of Goods and Service Tax
Components of GST- a) CGST and b) SGST (Dual GST)
Rates for CGST and SGST would be determined by taking into account the revenue
consideration
CGST and SGST would be applicable to all the intra-state transaction of goods and
services except the exempted goods & services
Payment of CGST and SGST would be separate
Allocation of PAN linked taxpayer identification no with total of 13-15 digits
Input tax credit would be available for discharging the tax liability on all the transaction. But
no cross utilization of credit would be permitted.
Interstate transaction of goods and services would be subjected to IGST
Destination based taxes
Rates of CGST, IGST and SGST are expected to be equal to Revenue Neutral Rate (RNR)
Compensation to states

28. Particulars Existing TaxStructure GST Structure
Cascading Effect of
Taxation
Present Eliminated
Cross Utilization of ITC
Cross utilization of input tax
(VAT etc.) and CENVAT
(Excise & Service Tax) set-
off out of reach
In case of IGST only,.
Not available for CGST
& SGST
Account of Complete value
chain
Not captured fully Fully Captured
Taxable Event
Excise Duty- Manufacturing
VAT/Sale Tax- Sale of goods
Service Tax- Realization of
Service
“Supply” of
goods and
services
Compliance Less More
Administrative Cost More Less
Exemptions Around 300 Around 90
Tax Base Narrow Broad
Existing Tax Structure Vs. Goods and Service Tax
Source: Report of Task Force on GST, thirteenth Finance Commission, 2009

29. GST Rate Structure
PROPOSED GST RATES
Lower Rate Standard Rate Special Rate
Necessary items
and goods of basic
importance
Goods in general Precious metals and
Exempted items
Source: First Discussion Paper On Goods and Services Tax In India by The Empowered Committee of State Finance Ministers, New Delhi
November 10, 2009,p-29
Proposed Revenue Neutral Rate 27%
Expected Tax rate 20-23%
Ideal GST rate ( 13th finance commission) 18%
Global average GST rate 16.4%
Source: Ministry of Finance, 2016

31. GST and Agro-inputs
Agro- Inputs Existing Regime GST Regime Effect
Fertilizers# Enjoys bulk of subsidy;
tax concession;
exemptions: about 70%
cost of Urea is not taxed
at present
 If exemptions are removed-
Incidence of taxation will
increase on farmers;
 Majority of inputs are kept out
of GST
Seeds$ EXEMPTED EXEMPTED
Irrigation@ Electricity Electricity will be kept outside
GST
Machinery No Excise & Custom
Duties
Zero Rated
Agricultural
Services
Exempted If Included in GST- Incidence of
taxation will increase on farmers
Disclaimer: The real effect may vary based on the detail guidelines on the Tax rates; Concessions & Exemptions to Agro inputs in GST
# Satish Chander, (2016), GST and Fertilizers, Indian Journal of Fertilizers
$ www.cbec.gov.in
@ First Discussion Paper of EC on ST

32. GST and Investment in Agro-Processing Industry
Particulars Existing Regime GST Regime (18%) Effect
EXCISE DUTY
Refrigeration and Cold
Chain
No Tax Incidence of taxation will
increase
Machinery for the
preparation of meat,
poultry, fruits, nuts/
vegetables
Excise Duty= 6% Incidence of taxation will
increase
CUSTOM DUTY
All goods related to
Food Processing
Concessional BCD of 5% CUSTOM Duties are kept out
of GST
Cold chain including
pre-cooling unit, pack
houses, sorting and
grading lines and
ripening chambers
Concessional BCD of 5%
Refrigerated containers 5%
SERVICES - EXEMPTED
Information Source: MoFPI, GoI
Imports for Agro-
processing would not
avail ITC
Disclaimer: The real effect may vary based on the detail guidelines on the Tax rates; Concessions & Exemptions to machineries for agro processing in GST

33. GST and Agricultural Output
Agricultural Output
Unprocessed
Khanna, R. K. (2016)
ProcessedNon-
Taxable
Taxable
Goods Existing Regime GST Regime (18%) Effect
Food Grains Generally exempt from the
CENVAT, but many of the
food items, including food
grains and cereals, attract the
state VAT at the rate of 4%.
Price of food products will
rise
Fruits and
Vegetables
Rate of 2% without CENVAT
or 6% with CENVAT
Price of food products will
rise
Milk Products No tax on any of the fresh
dairy products; VAT @2-5%
on milk powders, 5% on
chakka (basic raw material
for shrikhand), table butter ,
cream, and UHT milk packed
in sachets
Price of milk products will
rise
 Prices of agricultural goods would increase between 0.61 and 1.18 per cent
 Prices of all manufacturing sector would decline between 1.22 and 2.53 per cent.
 Terms of trade will move in favour of agriculture between 1.9 to 3.8 per cent.
 The increase in agricultural prices would benefit millions of farmers in India.
(Thirteenth Finance Commission, 2009)

34. GST and Logistics and Transportation
Existing Regime Remark
Each of India’s states taxes goods that move across
their borders at different rates
Multiplicity of Taxation
Long delays at inter-state checkpoints
60% of India’s freight moves by road
Truck delays average Four-Eight hours at inter-
state checkpoints
 Higher logistics costs
 Logistics costs in India is higher by
two-to three times global
benchmarks, according to the World
Bank
Currently, each of India’s 29 states taxes goods that
move across their borders at different rates.#.
 Fright that moves across the country
is taxed multiple times
GST Regime Remark
GST system seeks to replace multiple taxes and
tariffs
Free the decisions on warehousing and distribution
from tax considerations
 More efficient cross-state
transportation with improvement in
transit time.
 Reformation of paperwork for road
transporters
 Cost efficiency to optimum use of
assets
Source: U.K. Mahapatra, Pavers England Limited
# http://www.livemint.com/Opinion/r2bFdm66acxASFWXlCS0RP/GST-a-new-road-for-transportation-and-logistics-industry-in.htm

35. GST and National Agricultural Market
State Sales Tax Taxes (as percent of MSP)
Uttar Pradesh Foodgrains-4 % Pulses-2 %
Oilseeds & Others- 4 %
16.71
Punjab 14.5
Haryana F&V – nil, Food grains—4 %
Pulses—4 %, Oilseeds—4 %
11.5
Uttarakhand 7.5
Himachal Pradesh 5.0
Andhra Pradesh All Commodities (except Maize,Jowar, Ragi, Bajra,
Coarse grains) 4 %
Gujarat 1.Spices --3%, 2.Aniseed-- 2%, 3.Cotton--4%, 4.
Isabgol—2 %, 5. Cummin-2%,6. Ajwain—2 %
Karnataka 1.Foodgrains-nil
2.Pulses -2% 3.Oilseeds-4%
Kerala Rs. 4 to 8 %
Madhya Pradesh NA 9.2
Maharashtra All agricultural commodities are exempted from Sales
Tax
3.4
West Bengal NA 2.5
 Facilitates the implementation of NAM by subsuming all the taxes on marketing of
agricultural produce.
 Facilitate Interstate movement of agricultural commodities which would improve
marketing efficiency, reduce overhead marketing cost.
 The simple uniform tax regime is expected to reduce the transportation time, and
curtail wastage of precious food.
 The ease of availing tax credit under GST regime is expected to boost inter-state trade
leading to achieving the objectives of National Agricultural Market.
Source: Garg Irina, 2016

36. GST and International Trade
 Imports would be subject to GST. Both CGST and SGST will
be levied on import of goods and services into the country.
 Exports, however, will be zero-rated, meaning exporters of
goods and services need not pay GST on their exports
 The gains in exports are expected to vary between 3.2 and 6.3
per cent and imports are expected to gain somewhere between
2.4 and 4.7 per cent
Source: Thirteenth Finance Commission, 2009.

37. Global Experiences in Goods and Service TaxNo.ofCountries
Time Period
Source: OECD report on Countries with VAT
Trend in adoption of
GST

38. Implementation of GST is expected to improve the gross domestic product (R. Vasanthagopal, 2011) by
providing the government revenue and continuously ensure the liquidity of the treasury (A. Nakhchian
et. al., 2013)
GDP in the Philippines and in Thailand was reduced by 16.43% and 7.90% respectively after
implementing the GST. Only in Singapore, the GDP is increased by 17.98% during the period of
implementing the GST (S. Venkadasalam, 2014)
Cont
…

39. Summary & Conclusion
As cited by many of the literature on goods and service tax in India that GST is going to
change the indirect tax structure in India and would be a milestone in Indian taxation
history by integrating the nation with rest of the world in adoption of VAT. At the same
time it is also anticipated that implementation of GST would boost the economic growth
by the means of wider tax base; compliance in tax payment; and by pushing balance of
trade on favorable side. However, in some of the countries this apprehension might not
hold good.
About its implications on agricultural sector it could be conclude that though the overall
tax burden on consumers will be less in new tax regime, but certainly it would have
inflationary pressure on the food articles especially processed one which may lead to
restoring the consumption towards fresh farm products.
On the other side of coin it may hurt the farming community as they have to pay higher
taxes in new tax regime on inputs which in turn will reduce their net income. Since, the
domestic as well as international trade would be encouraged in GST regime and if the
gains from the trade are fairly transmitted to the back end then only it may help the
farming community to maintain the current standard of living and investments in farm
business.

40. This Presentation is Available at: Slideshare.net