The Government of India clarified in Lok Sabha that GST rates, including those on agricultural inputs, are determined based on recommendations of the GST Council, a constitutional body representing both Centre and States. Concerns were raised regarding high GST (18%) on items like fruit protection paper bags used by farmers.
The Government of India clarified in Lok Sabha that GST rates, including those on agricultural inputs, are determined based on recommendations of the GST Council, a constitutional body representing both Centre and States. Concerns were raised regarding high GST (18%) on items like fruit protection paper bags used by farmers. In response, the Government stated that the GST Council, in its 56th meeting held in September 2025, reduced the GST rate on paper sacks and bags (Chapter 48) from 18% to 5%, thereby addressing such concerns. Further, the Indian Council of Agricultural Research (ICAR) is actively promoting fruit bagging technology in crops like mango and litchi through research and demonstrations. Impact assessments conducted by ICAR institutes revealed significant benefits, including a 30–35% increase in litchi yield, reduced pest incidence, and improved fruit quality, highlighting the effectiveness of this agricultural practice.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
LOK SABHA
UNSTARRED QUESTION NO.5754
TO BE ANSWERED ON MONDAY, MARCH 30, 2026/CHAITRA 09, 1948 (SAKA)
GST ON AGRICULTURAL ITEMS
5754. Shri Deepender Singh Hooda:
Will the Minister of FINANCE be pleased to state:
a. whether the Government is aware that many items used by the farmers like the fruit protection paper bags for agriculture purpose are included in high GST slab of 18 per cent;
b. if so, the steps taken by the Government to reduce/exempt GST from such items;
c. if not, the reasons therefor;
d. whether it is true that Indian Council of Agriculture Research (ICAR) is undertaking research based promotion of Bagging technology among horticultural farmers and if so, whether any impact assessment study been conducted in this regard; and
e. if so, the details thereof?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a), (b) and (c):
i. GST rates and exemptions, are prescribed on the recommendations of the GST Council, which is a constitutional body comprising representatives from the States/UTs and Centre.
ii. Based on the recommendation of the GST Council in its 56th meeting held on 09.2025, the GST rate on Paper Sacks/Bags falling under Chapter 48 was reduced from 18% to 5%.
(d) & (e):
i. Some institutes under Horticultural Science Division of Indian Council of Agriculture Research (ICAR) are undertaking research based promotion of Bagging technology mainly in fruits like mango and litchi. ICAR-Central Institute for Subtropical Horticulture (CISH), Lucknow has undertaken demonstration of Good Agricultural Practices (GAP) in mango which includes fruit bagging as essential component in two mango clusters (Dashehari and Chausa).
ii. Impact assessment of mango GAP (Fruit Bagging) was done jointly by ICAR CISH, Lucknow and ICAR-National Institute of Agricultural Economics and Policy Research (NIAP), New Delhi. The policy brief has been published by ICAR-NIAP, New Delhi. In litchi, ICAR-National Research Centre on Litchi (NRCL), Muzaffarpur has provided 30,000 fruit bags to 100 farmers after on-field trials and field day demonstrations with the objective of assessing the impact of bagging technology on yield, fruit quality and pest incidence in litchi varieties Shahi and China. The adoption of fruit bagging technology increased average yield of litchi by nearly 30–35 per cent, reduced fruit burn/cracking incidence substantially (0-5% in bagged fruits), and the incidence of fruit borer reduced to less than 3 per cent.