Jain Irrigation today said it will pass on to consumers and farmers the benefit of reduced GST rate on drip irrigation systems.
The GST Council in a meeting yesterday reduced the GST rate on drip irrigation systems including laterals, sprinkler products to 12 per cent from 18 per cent.
"The new GST rate shall be effective January, 25 2018," th company said in a BSE filing adding that it has decided to pass on this benefit of 6 per cent directly to customers/farmers.
Jain Irrigation hailed the government's decision to encourage farmers to invest in efficient irrigation systems which save water and improve productivity.
"We estimate that this action will have positive impact in the upcoming busy season for our drip irrigation division," the company said.
Jain Irrigation, with more than 10,000 associates worldwide and revenue of over Rs 60 billion, is an Indian multinational company with manufacturing plants in 28 locations across the globe.
It is engaged in manufacturing of micro irrigation systems, PVC pipes, HDPE pipes, plastic sheets, agro processed products, renewable energy solutions, tissue culture plants, financial services and other agricultural inputs since last 34 years.
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