Koadgu-Mysuru MP Yaduveer Wadiyar Urges GST Exemption for Black Pepper

The request focuses on the protection of pepper growers in Karnataka’s Kodagu, Hassan, and Chikkamagaluru districts, who are facing new challenges due to GST notices.

New Delhi: Koadgu-Mysuru Lok Sabha MP Yaduveer Krishnadatta Chamaraja Wadiyar on Tuesday met Finance Minister Nirmala Sitharaman, urging her to continue exempting black pepper from the Goods and Services Tax (GST). The request focuses on the protection of pepper growers in Karnataka’s Kodagu, Hassan, and Chikkamagaluru districts, who are facing new challenges due to GST notices.

"Met Hon'ble FM Nirmala Sitharaman Ji to discuss GST exemption for black pepper, a vital issue for farmers in Kodagu, Hassan & Chikmagalur districts. Requested exemption continuation, citing agricultural produce classification & potential negative impact on farmers & exports," Wadiyar posted on X, addressing his concerns.

In a letter submitted to the Finance Minister, a copy of which was also shared online, Wadiyar highlighted that several pepper growers in his constituency, particularly from Kodagu, had received notices from the GST office in Mysuru. The notices stated that the sale of pepper grown on their plantations would be subject to GST and that planters must be registered under the GST Act.

"The GST notice stems from a misunderstanding about the nature of the drying process. The pepper growers requested me to bring to your kind attention that the drying process does not fundamentally alter the essential characteristics of pepper. It is primarily a preservation technique," Wadiyar’s letter clarified. He argued that the GST Act’s definition of agricultural produce aligns with pepper, much like commodities such as paddy and chillies, which are not subject to GST.

Wadiyar warned that imposing GST on black pepper could have serious negative effects on plantation regions in Karnataka and neighbouring states, including Kerala and Tamil Nadu. 

"It could lead to increased costs, reduced profit margins, and potential job losses. Additionally, it could negatively impact exports, reducing India’s competitiveness in the global market," he added.

In his plea, Wadiyar requested that dried pepper, following the drying of green pepper, be assigned a distinct HSN code and be exempt from GST.

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