States should de-notify GST Items from APMC ACT ( 2 )

This entry was posted on Friday, June 23rd, 2017 and is filed under APMC VS GST.

APMC has become a barrier on farmers and a burden on traders who trade in farm products which are used as industrial raw material –

Traders have to give WEEKLY RETURNS to the APMC

They have to use PERMITS during the road transport.

They have to go for yearly ASSESSMENTS.

They are compelled to PAY A FIXED PERCENTAGE on the PURCHASE TURNOVER, on behalf of farmers of the state where they trade. This charge is compulsory even if the business area is OUTSIDE THE PLACE called ‘ APMC MARKET YARD’.

There is no APMC levy on imports from other countries or on interstate purchases. Only the trader who ‘PURCHASES WITH IN THE STATE’ and supports the farmers of his own state is the sufferer! Indirectly, the poor farmer of the state is the real sufferer as every trader considers this levy before making any purchases.

So this charge is a barrier on growers and burden on traders. 

APMC addition is not a tax. Then what it is? Is it a service charge or a compulsory donation? Why were some states against to this levy from the beginning? The state governments which have this kind of APMC’s argue that this is a market fee payable on services but PURCHASES FROM OUTSIDE THE STATE ARE NOT IN THEIR JURISDICTION.

Then why this compulsory levy on the purchase turnover of even non-perishable products which are used as industrial raw material, even if the business area is OUTSIDE THE PLACE called’ APMC MARKET YARD’. There is no need of any APMC MARKET YARD for these commodities as the farm product enters directly to the premises of buyer from the place of the seller.

The electricity board gives a monthly bill of their services on individual meters. The telephone department gives a monthly bill on individual connections. Local bodies also give a periodic bill on individual water consumption.

But APMC’s collect huge sum from traders without giving any individual bill describing the used or consumed services. Penalties are also unreasonable.

To move towards a liberalized trade, states should remove GST Items from the APMC Act before 1 July 2017.

Filed Under: APMC VS GST