GST on mustard: Arhtiyas in Charkhi Dadri stop buying

Haryana’s move to ask arhtiyas (commission agents) to pay GST on the procurement of mustard crop has led to a complete halt on the crop’s procurement in Charkhi Dadri district for four days.

Arhtiyas are aggrieved that the procurement agency is Hafed. They are entitled to only Rs. 70 per quintal as commission for their limited role of cleaning, packaging, loading of the crop before it is taken away by Hafed into their godowns.

According to them, the rate of procurement for mustard crop is Rs. 5,650 per quintal, on which the GST amount comes out to be Rs. 282 per quintal. However, they will get only Rs. 70 as commission. “When the main procurement agency is Hafed, why should arthiyas pay GST? Even if we agree to pay GST, we have to pay from our own pocket in the procurement process. We have written to Hafed not to procure till this issue is settled, “Ram Kumar, president of Anaj Mandi Arhtiya Association, Charkhi Dadri, told TOI.

Rishipal, who also works as an arhtiya in Charkhi Dadri, asked why should they suffer financial loss when they were not even the main procurement agency. He added they had also met local MP Dharambir Singh and Charkhi Dadri deputy commissioner (DC), apprising them of the problem, but nothing had been done.

Hafed general manager (procurement, warehouse, and finance and accounts division) Arun Kumar Ahuja said arhtiyas had to pay 5% GST, in which 3% would be paid by them straightway in their accounts and remaining 2% would be deposited in their accounts, which they would be able to claim subsequently. “We are doing it totally as per the mandate of the excise and taxation department, ” Ahuja added.

Source: The Times of India