Fruits & Vegetables

As per the latest revision in the GST rates, of the all food categories taken together under different chapter heads/subheads, 36% of the food items have been exempted from GST (0%) and 37% of the food items shall attract GST of 5%. Hence, almost 73% of the food items are under lowest tax slab of 0% or 5%.

Setting up and operating a cold chain facility; and setting up and operating warehousing facility for storage of agricultural produce: Deduction to the extent of 150% is allowed for expenditure incurred on investment Under Section 35- AD of the Income Tax Act 1961.

All goods related to Food Processing, imported as part of the Project Import, irrespective of their tariff classification, are entitled to uniform assessment at concessional basic customs duty of 5%. Concessional 5% Basic Customs Duty (BCD) available under project imports for cold storage, including pre-cooling unit, pack houses, sorting and grading lines and ripening chambers. Customs duty reduced from 10% to 5% for refrigerated containers. Exemption of import duty for Import of Raw material/Intermediate Food Items against the export of finished products under advance authorization scheme of the Department of Commerce.

A special fund of INR. 2000 crore has been set up in National Bank for Agriculture and Rural Development (NABARD) to provide credit at affordable rates to boost food processing sector.  Loans are extended up to 95% of the eligible project cost for entities promoted by the State Governments while other categories of promoters are extended loans up to 75% of the project cost.