Lok Sabha Question No. 1390 (UNSTARRED), answered on 2017-07-25
Subject: Uniform Taxation on MSPs
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: JANARDAN SINGH SIGRIWAL

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

LOK SABHA UNSTARRED QUESTION NO. 1390 TO BE ANSWERED ON 25 th  JULY, 2017

## UNIFORM TAXATION ON MSPs

1390.   SHRI JANARDAN SINGH SIGRIWAL:

Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) whether steps have been taken by the Government to bring various States on board for a uniform taxation on various Minimum Support Prices (MSPs) ;
- (b) if so, the details of the solution proposed and the list of States which are against the idea of uniform taxation on MSP;
- (c) if not, the reasons therefor; and
- (d) the  amount  foregone  in  subsidy  due  to  higher  taxation  in  the  last three  years and the details of various States which have high tax policy on MSP?

A N S W E R MINISTER OF STATE FOR  CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SHRI C. R. CHAUDHARY)

- (a), (b) & (c): Goods and Service Taxes (GST) was implemented w.e.f. 1 st July, 2017. It reduces the total taxes levied on Minimum Support Price (MSP) of  foodgrains.  States  levy  various  taxes  on  procurement  of  foodgrains undertaken for Central Pool within their jurisdiction. The total tax rate before and after implementation of GST is enclosed as Annexure-A.
- (d): Since,  taxes  are  paid  on  procurement  of  foodgrains  for  the  Central Pool;  hence  these  taxes  are  a  part  of  the  Food  Subsidy.    The  statutory charges paid to various states, on operation of procurement of wheat/paddy for  last  three  years  is  enclosed  at  Annexure-B.  Details  of  taxes  levied  in various States on MSP of foodgrains is enclosed as Annexure-A.

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## ANNEX REFERRED TO IN REPLY TO PARTS (a) to (d) OF UNSTARRED QUESTION NO  1390  TO BE ANSWERED ON 25 TH  JULY, 2017 IN LOK SABHA.

## Food Corporation of India

## Statutory Taxes Rate of differenet States/Uts for 2016-17

| State            | Market Fee   | RD Fee/ APMC Cess   | Nirashrit Shulk/ Mapari Charges   | VAT   | ID Fee   | Arhatia/ Socities Commission   | Total taxes pre- GST   | Total taxes post GST   | Market Fee   | RD Fee/ APMC Cess   | Nirashrit Shulk/ Mapari Charges   | VAT   | ID Cess   | Arhatia/Socities Commission   | Total taxes pre-GST   | Total taxes post GST   |
|------------------|--------------|---------------------|-----------------------------------|-------|----------|--------------------------------|------------------------|------------------------|--------------|---------------------|-----------------------------------|-------|-----------|-------------------------------|-----------------------|------------------------|
| Punjab           | 2.00         | 2.00                |                                   | 5.00  | 3.00     | 2.50                           | 14.50                  | 6.50                   | 2.00         | 2.00                |                                   | 5.00  | 3.00      | 2.50                          | 14.50                 | 6.50                   |
| Haryana          | 2.00         | 2.00                |                                   | 5.00  |          | 2.50                           | 11.50                  | 6.50                   | 2.00         | 2.00                |                                   | 5.00  |           | 2.50                          | 11.50                 | 6.50                   |
| U.P. #           | 2.00         | 0.50                |                                   | 4.00  |          | Rs.27/Qtl (1.77%)              | 8.27                   | 4.27                   | 2.00         | 0.50                |                                   | 4.00  |           | Rs.32/Qtl (2.12%)             | 8.62                  | 4.62                   |
| M.P.             | 2.00         |                     | 0.20                              | 5.00  |          | Rs.27/Qtl (1.77%)              | 8.97                   | 3.97                   | 2.00         |                     | 0.20                              | 5.00  |           | Rs.32/Qtl (2.12%)             | 9.32                  | 4.32                   |
| Bihar            |              |                     |                                   | 4.00  |          | Rs.27/Qtl (1.77%)              | 5.77                   | 1.77                   |              |                     |                                   | 4.00  |           | Rs.32/Qtl (2.12%)             | 6.12                  | 2.12                   |
| Rajasthan        | 1.60         |                     |                                   |       |          | 2% onMSP& Rs.27/Qtl (1.77%)    | 5.37                   | 5.37                   | 1.60         |                     |                                   |       |           | 2% onMSP& Rs.27/Qtl (1.77%)   | 5.37                  | 5.37                   |
| Uttrakhand       | 2.50         |                     |                                   | 5.00  |          |                                | 7.50                   | 2.50                   | 2.50         |                     |                                   | 5.00  |           | -                             | 7.50                  | 2.50                   |
| Delhi            | 1.00         |                     |                                   |       |          | 2.00                           | 3.00                   | 3.00                   |              |                     |                                   |       |           |                               | -                     | -                      |
| Gujrat           | 1.00         |                     |                                   |       |          |                                | 1.00                   | 1.00                   | 1.00         |                     |                                   |       |           |                               | 1.00                  | 1.00                   |
| Jhrakhand        | -            |                     |                                   |       |          | 2.50                           | 2.50                   | 2.50                   | 1.00         |                     |                                   |       |           | 2.50                          | 3.50                  | 3.50                   |
| Maharashtra      | 1.05         |                     | Rs.2.75/ qtl (0.18%)              |       |          |                                | 1.23                   | 1.23                   | 1.05         |                     | 0.18                              |       |           | Rs.32/Qtl (2.12%)             | 3.35                  | 3.35                   |
| Himachal Pradesh | 1.00         |                     |                                   | 4.00  |          |                                | 5.00                   | 1.00                   | 1.00         |                     |                                   | 4.00  |           |                               | 5.00                  | 1.00                   |
| J& K             |              |                     |                                   |       |          |                                | -                      | -                      |              |                     |                                   |       |           |                               | -                     | -                      |
| West Bengal      | 0.50         |                     |                                   |       |          | Rs.27/Qtl (1.77%)              | 2.27                   | 2.27                   | 0.50         |                     |                                   |       |           | Rs.32/Qtl (2.12%)             | 2.62                  | 2.62                   |
| Andhra Pradesh   | 1.00         |                     |                                   | 5.00  |          |                                | 6.00                   | 1.00                   | 1.00         | 5.00                |                                   | 5.00  |           | Rs.32/Qtl (2.12%)             | 13.12                 | 3.12                   |
| Assam            | 1.00         |                     |                                   |       |          |                                | 1.00                   | 1.00                   | 1.00         |                     |                                   |       |           | Rs.32/Qtl (2.12%)             | 3.12                  | 3.12                   |
| Chhattishgarh    | 2.00         |                     | 0.20                              |       |          |                                | 2.20                   | 2.20                   | 2.00         |                     | 0.20                              | 5.00  |           | Rs.32/Qtl (2.12%)             | 9.32                  | 4.32                   |
| Karnataka        |              |                     |                                   |       |          |                                | -                      | -                      | 1.50         |                     |                                   |       |           | -                             | 1.50                  | 1.50                   |
| Kerala           |              |                     |                                   | -     |          |                                | -                      | -                      | 7.00         |                     |                                   |       |           | -                             | 7.00                  | 7.00                   |
| Orissa           |              |                     |                                   | 5.00  |          |                                | 5.00                   | -                      | 2.00         |                     |                                   | 5.00  |           | Rs.32/Qtl (2.12%)             | 9.12                  | 4.12                   |
| Puducherry       |              |                     |                                   |       |          |                                | -                      | -                      |              |                     |                                   |       |           |                               | -                     | -                      |
| Tamilnadu        |              |                     |                                   |       |          |                                | -                      | -                      |              |                     |                                   |       |           |                               | -                     | -                      |
| Telangana        |              |                     |                                   |       |          |                                |                        | -                      | 1.00         | 5.00                |                                   | 5.00  |           | Rs.32/Qtl (2.12%)             | 13.12                 | 3.12                   |

(Figure are in percentage of MSP unless otherwise mentioned)

## ANNEX REFERRED TO IN REPLY TO PART (d) OF UNSTARRED QUESTION NO  1390 TO BE ANSWERED ON 25 TH  JULY, 2017 IN LOK SABHA.

## Statutory Taxes & levies paid to State Governments/UTs on Central Pool Procurement

(Amount in crore)

## Wheat

|   Sl. No. | RMS (Rabi Marketing Season)   |   Amount |
|-----------|-------------------------------|----------|
|         1 | RMS 2014-15                   |     4498 |
|         2 | RMS 2015-16                   |     4623 |
|         3 | RMS 2016-17                   |     4245 |

## Rice/Paddy

|   Sl. No. | KMS (Kharif Marketing Season)   |   Amount |
|-----------|---------------------------------|----------|
|         1 | KMS 2014-15                     |     7143 |
|         2 | KMS 2015-16                     |     8326 |
|         3 | KMS 2016-17*                    |     9412 |