Government Introduces 5% GST on Horse Sales at Pushkar Fair

Government Introduces 5% GST on Horse Sales at Pushkar Fair

Issue: The state Goods and Services Tax (GST) department introduced a tax levy on the sale of horses at the renowned Pushkar Fair, marking a new step in formalizing and taxing the high-value animal trading sector.

Facts:

• The state GST department introduced a 5% Goods and Services Tax on every sale of horses at the Pushkar Fair.
• This marks the first time such a tax has been applied to horse sales at the fair.
• The animal husbandry department is providing official receipts for the transactions, which will be used by the GST department to collect the tax.
• Officials have set up checkpoints along various routes to monitor horse transportation and ensure compliance.
• The Pushkar Fair attracts buyers from neighboring states including Rajasthan, Punjab, Uttar Pradesh, and Gujarat.

Decision:

The government decided to impose a 5% GST on the sale of horses at the Pushkar Fair, transforming the traditionally informal sale of these high-value animals into a taxable commercial transaction.

Key TakeDowns:

• Formalization of Trade: The move aims to bring the high-value trade of horses, which attracts significant commercial interest, into the formal tax net. * Rate and Compliance: The 5% rate is intended to balance revenue collection with maintaining the viability of the traditional animal trade. Checkpoints and official receipts are being used to enforce the new tax compliance requirement.
• Economic Value: The tax imposition underscores the high economic value placed on quality horses, driven by surging demand for riding and breeding across the agricultural and luxury segments.

Source :- Times Of India