Content

1. Role of Technology in Empowering Annadatas
2. Recommendations of the 56th Meeting of the GST Council held at New Delhi, toda

Role of Technology in Empowering Annadatas

Basics

• Annadata: Literally “provider of food” – refers to Indian farmers.
• Importance: 45%+ of India’s workforce is engaged in agriculture; sector contributes ~18% to GDP (2024-25).
• Challenge: Low productivity, climate change, fragmented landholdings, price volatility, middlemen exploitation.
• Solution Pathway: “Beej se Bazaar Tak” modernization through technology → higher yields, reduced risks, better incomes

Relevance : GS III (Economy – Agriculture, Energy Security, Sustainable Development) + GS II (Governance – Farmers’ Welfare, Rural Development, Climate Commitments) + GS I (Geography – Resource Distribution).

Artificial Intelligence (AI) & Internet of Things (IoT)

• Information access:
  • Kisan e-Mitra: AI chatbot in 11 languages; 95 lakh+ queries solved; reduces language & literacy barriers.
• Crop protection:
  • NPSS (2024): Covers 61 crops & 400 pests; issued 10,154 pest advisories by Mar 2025 → minimizes losses from pests/climate risks.
• Precision & smart farming:
  • AI-enabled satellite mapping improves crop forecasting & farm-level decisions.
  • IoT sensors: Monitor soil, water, and weather → optimize input use.
• Research application:
  • IIT Ropar’s IoT for saffron → enhancing niche/high-value crops.
• Impact: Predictive analytics → less dependence on guesswork; reduces costs, increases sustainability.

Space Technology in Agriculture

• Crop Forecasting (FASAL Project):
  • MNCFC uses ISRO’s optical & microwave satellite data → covers wheat, rice, sugarcane, pulses, oilseeds.
  • Crop Health Factor introduced → better early warning for stress.
• Risk Management:
  • Real-time drought monitoring via SAC geoportals.
  • Support to PMFBY (insurance): Smart sampling, yield estimation, dispute resolution.
• Decision Making:
  • Krishi-DSS: Integrates weather-soil-water data for farmers & policymakers.
• Impact: Space-based agriculture transforms macro-forecasting into micro-advisories for farmers.

Drone Revolution

• Government support (SMAM):
  • Subsidies: Up to 100% for ICAR/Institutions, 75% for FPOs, 40–50% for farmers & CHCs.
  • Special benefits for SC/ST, women, NE farmers.
• Applications:
  • Precision spraying, crop monitoring, soil health mapping, insurance surveys.
• Namo Drone Didi (2023-26):
  • Budget: ₹1261 crore; 15,000 drones for Women SHGs; 80% subsidy up to ₹8 lakh.
  • Empowerment of women as agri-entrepreneurs.
• SVAMITVA (Land mapping):
  • Drones surveyed 3.23 lakh villages (till July 2025).
  • Outcomes: Reduced land disputes, formal ownership papers → bank credit access.
• Impact: Drones reduce costs, democratize tech, empower women & rural youth.

JAM Trinity in Agriculture

• Direct Benefit Transfers (DBT): Eliminates middlemen & corruption.
• Example: PM-KISAN 20th installment (Aug 2025) – ₹20,500 crore to 9.7 crore farmers.
• Financial empowerment: Bank accounts + Aadhaar + Mobile → rural credit inclusion.
• Impact: Predictable income flow, better planning capacity for farmers.

Broader Digital Ecosystem

• Digital Agriculture Mission: Promotes agri-startups, use of big data, digital platforms.
• e-NAM (National Agricultural Market):
  • Online trading platform; reduces mandi-based exploitation; widens market access.
• Agri-Tech Startups: Innovating in supply chain, storage, e-commerce, credit scoring for small farmers.
• Integration: Seed → Production → Market → Insurance → Credit all digitized.

Strategic Impact of Technology on Annadatas

• Productivity: Smart farming & AI forecasting reduce input costs and increase yields.
• Resilience: Space-based & IoT monitoring makes agriculture climate-smart.
• Equity: JAM & drone schemes empower smallholders, women, and marginalized groups.
• Efficiency: Drones, digital marketplaces, and satellite tools cut delays & wastage.
• Trust & Transparency: DBT & land mapping reduce disputes and middlemen exploitation.
• National Goals: Contributes to Doubling Farmers’ Income, Atmanirbhar Bharat, and SDGs (2 – Zero Hunger, 5 – Gender Equality, 8 – Decent Work, 13 – Climate Action).

Conclusion

• Technology as Equalizer: AI, IoT, drones, and space tech bridge information and resource gaps, empowering small and marginal farmers with tools once limited to large-scale farming.
• Inclusive Growth Driver: Initiatives like JAM, Namo Drone Didi, and SVAMITVA ensure transparency, financial inclusion, and women’s participation, making agriculture more equitable and resilient.
• Future-Ready Agriculture: By integrating “Beej se Bazaar Tak” digitally, India is building a climate-smart, market-linked, and self-reliant agricultural ecosystem, securing both farmer prosperity and national food security.

Recommendations of the 56th Meeting of the GST Council held at New Delhi, today

Basics of GST

• GST (Goods and Services Tax): Indirect tax subsuming excise duty, service tax, VAT, CST, etc., implemented in India w.e.f. 1st July 2017.
• GST Council: Apex federal body chaired by Union Finance Minister with State FMs, decides GST rates and reforms.
• Current Structure (till now): 4-tier rate system – 5%, 12%, 18%, 28% (plus cess on demerit goods).
• Challenges in GST so far:
  • Complex multi-rate structure.
  • Inverted duty structure (higher tax on inputs than finished goods).
  • Pending disputes due to absence of appellate tribunal.
  • Burden on small businesses in compliance.
  • Affordability of essentials like healthcare, insurance, and medicines.

Relevance : GS III (Economy – Taxation, Resource Mobilisation, Growth & Development) + GS II (Governance – Cooperative Federalism, Institutions, Ease of Doing Business).

Rate Rationalisation

• Move from 4-tiered structure → 2 rates + demerit slab:
  • Merit Rate: 5% (essentials, food items, agri-goods, labour-intensive products).
  • Standard Rate: 18% (majority of goods & services).
  • Demerit Rate: 40% (sin goods – pan masala, gutkha, cigarettes, tobacco).
• Simplifies compliance, reduces disputes, improves consumer trust.

Relief to Common Man

• Insurance: Exemption of GST on all life and health insurance policies.
• Healthcare:
  • GST NIL on 33 lifesaving drugs, NIL on 3 cancer/rare disease medicines.
  • Medicines: 12% → 5%; Medical apparatus & diagnostic kits: 18/12% → 5%.
• Household goods: Reduction to 5% on soaps, shampoos, toothpaste, bicycles, tableware.
• Food:
  • UHT milk, paneer, Indian breads → NIL.
  • Packaged food (noodles, chocolates, coffee, butter, ghee, cornflakes) → 5%.

Boost to Key Sectors

• Agriculture: Machinery, tractors → 12% → 5%.
• Labour-Intensive industries: Handicrafts, granite, leather goods → 5%.
• Automobiles:
  • Small cars & motorcycles ≤350cc → 28% → 18%.
  • Buses, trucks, ambulances, 3-wheelers → 18%.
  • Auto parts → uniform 18%.
• Cement: 28% → 18% (massive infra push).
• Textiles: Correction of inverted duty (fibre 18% → 5%; yarn 12% → 5%).
• Fertilizers: Acids (sulphuric, nitric, ammonia) 18% → 5%.
• Renewables: Devices & parts 12% → 5%.
• Hospitality: Hotel accommodation ≤ ₹7,500/day → 5%.
• Well-being services: Gyms, salons, yoga centres → 5%.

Institutional Reforms

• Operationalisation of GST Appellate Tribunal (GSTAT):
  • Appeals by Sept 2025, hearings by Dec 2025.
  • Principal Bench to act as National Appellate Authority for Advance Rulings.
  • Reduces litigation backlog, enhances taxpayer trust.

Trade Facilitation

• Refunds:
  • 90% risk-based provisional refunds for exports (zero-rated supplies).
  • 90% refunds for inverted duty claims (from Nov 2025).
  • Removal of threshold for small exporters (courier/postal mode exports).
• Simplified GST Registration:
  • Low-risk businesses with <₹2.5 lakh monthly liability → auto registration in 3 days.
  • Benefits ~96% new applicants.
• E-commerce sellers: Simplified GST for small suppliers operating across states.
• Amendments for Intermediary Services: Export services to be taxed at location of recipient, enabling export benefits.

 Law & Procedure Reforms

• Post-sale discounts:
  • Discount eligibility simplified; ITC reversal mechanism clarified.
  • Circular 212/6/2024 rescinded to cut disputes.
• Pan masala, gutkha, tobacco: GST based on Retail Sale Price (RSP) rather than transaction value to curb evasion.
• Lottery valuation rules aligned with revised GST.

Implementation Timeline

• 22 Sept 2025: New GST rates on goods & services (except tobacco/sin goods).
• 1 Nov 2025: Refund reforms + simplified registration.
• Till compensation cess loan repayment: No rate cut on sin goods (pan masala, cigarettes, gutkha).

Broader Implications

• For Citizens: Lower prices on essentials, healthcare, insurance → higher affordability & social security.
• For Economy: Boost to agriculture, MSMEs, textiles, construction, renewables → growth multiplier.
• For Business Climate: Simplified structure, uniform auto-parts rate, corrected duty inversions → ease of doing business.
• For Governance: GSTAT + refund reforms → reduces litigation & delays, strengthens trust in GST system.
• For Fiscal Health: While revenue short-term dips, broadened base + compliance efficiency expected to compensate.