The Crux Of The Farmers Agitation
Dated : 09 Dec 2020 (IST)
What is the crux of new Farm Reform and why politicians are worried. Read this analysis to understand.
In the new system, the traders of farm produce have to register them with their PAN with the Central Authority.
First level transaction (between farmer & Trader) is out of the purview of GST system.
Gradually, further trade (though Registered Traders) shall be brought into GST system. Consequently, SALE and INCOME of agriculture produce shall get into Govt Records.
The GAME shall start from here on. The farmers shall remain exempted from Income Tax & GST system forever. But Traders in Agriculture produce selling up-stream will be brought into GST & IT regime.
To understand here is an example. If Jaylalitha & Chidambram are to sell their Grapes and Gobhi worth Rs 500 Crs respectively to traders, they will remain exempted from Income tax, but they have to quote the PAN of Trader in their ITRs.
The Trader has to pay the GST on Rs 500 Crs & Income Tax on its income by selling it up-stream.
Imagine there are No Grapes & No Gobhi (it is the corrupt money). Naturally, Trader shall take GST & Income Tax Payable from Jaylalitha or Chidambram. Therefore, ALL Jaylalithas & Chidambrams (Commission Agents & politicians etc) will have to dish out huge sums of money NOT PAID till now showing their Agriculture Income.
Honest Farmers, who actually had physical produce, shall remain free of this rut.
This is the CRUX of the Matter. Now you understand why politicians are spending huge money in brining (paid) agitators.
