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GST On Articles by Cooperative Societies
Since its inception on 6th July 2021, it is endevaour of Ministry of Cooperation to encourage states/UTs & cooperative societies to submit their proposals including those related to tax, which are not in parity with the benefits available to other business entities. In this regard, a memorandum dated 25.11.2024 from Minister of Cooperation, Tamil Nadu was received seeking, inter-alia, GST exemption for cooperative products and services of the cooperative societies. The proposal related to GST are examined by GST Council (a constitutional body). Recently the GST on molasses was reduced from 28% to 5% which will benefit Cooperative Sugar Mills. Details of tax relief/benefits provided to cooperatives are at ANNEXURE I.
Government has taken following initiatives to extended financial assistance to support the success of cooperative institutions are as:-
1. Strengthening of PACS through Computerization- To strengthen PACS, project for Computerization of functional PACS with a total financial outlay of ?2,516 Crore has been approved by the Government of India, which entails bringing all functional PACS in the Country onto a common ERP based national software, linking them with NABARD through StCBs and DCCBs. A total of 67,930 PACS from 30 States/ UTs have been sanctioned under the project. A total of 40,727 PACS have been onboarded on ERP Software and hardware has been procured by 29 States/UTs. the state-wise details of PACS approved and released amount under this project is at ANNEXURE-II.
II. Computerization of Agriculture and Rural Development Banks (ARDBs): To strengthen the long-term cooperative credit structure, the project of computerization of 1,851 units of Agriculture and Rural Development Banks (ARDBs) spread across 13 States/ Union Territories has been approved by the Government. NABARD is the implementing agency for the project. So far, proposals from 10 States/UTs have been received and sanctioned. Further, GOI share amounting to Rs 4.26 crore has been released to 8 States/UTs in FY 2023-24 and FY 2024-25 for procurement of hardware, digitization and setting up of support system. The State-wise details of ARDBs approved and released amount under the project Computerization of Agriculture and Rural Development Banks (ARDBs) is at ANNEXURE III.
III. Rs.10,000 crore loan scheme launched for strengthening of Sugar Cooperative Mills: Government has launched a scheme through NCDC for setting up ethanol plants or cogeneration plants or for working capital or for all three purposes. So far, the Ministry has released Rs. 750 crore to NCDC (Rs. 500 crore in FY 2022-23 and Rs. 250 crore in FY 2024-25) under the scheme and NCDC has so far sanctioned .8040.38 crore to 58 CSMs.
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