New Delhi: The Government of India on Tuesday said that the GST Council has decided not to withdraw the GST on kendu leaves in its meeting held in February 2023.
While replying to an unstarred question of BJD MP, Sasmit Patra, MoS Ministry of Finance, Pankaj Chaudhary said that GST rates are prescribed on the recommendation of the GST Council, which is a constitutional body composed of representatives from States/UTs and Centre.
The issue for withdrawal of GST on kendu leaves was discussed in the 14th meeting of the Council held on May 18 & 19, 2017, 15th meeting held on June 3, 2017 and the 37th meeting held on September 20, 2019 and the GST Council recommended to maintain the rate at 18 per cent.
Chaudhary said the issue of withdrawal/ reduction of GST on kendu leaves was again discussed in the 49th Meeting of the GST Council held on February 18, 2023. The Council agreed with the recommendation of the Fitment Committee for retaining the GST rate on kendu leaves, he added.
Notably, the State Government has been demanding withdrawal of 18 percent GST imposed on kendu leaves as over 8 lakh tribal people are depending on the trade.
Chief Minister Naveen Patnaik had written letters to Union Finance Minister Nirmala Sitharaman twice on this issue. The last letter was written last month. In December last, a delegation of BJD MPs met Sitharaman in New Delhi and raised this demand.
Kendu leaf, a minor forest produce (MFP), is the financial backbone of about 8 lakhs kendu leaf pluckers, binders & seasonal workers of Odisha and mostly belong to the tribal community and poorest of the poor of the society.
The tribal people collect the leaves as part of their right defined under Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006. They have the right to procure and sell these products.
Imposition of GST (18 percent) on kendu (tendu) leaves is adversely affecting the kendu leaves trade. It also affects the livelihoods of kendu leaf pluckers, binders & seasonal workers and implementation of social security and welfare schemes for them.