Impact of GST on Agricultural Sector with Special Reference to Solapur District

Abstract: The Goods and Services Tax (GST), implemented in India in July 2017, has brought significant changes to various sectors, including agriculture. Although agriculture is largely exempt from direct taxation under GST, several indirect effects influence the sector due to the taxation of inputs like fertilizers, machinery, and transport services. This study aims to analyse the impact of GST on the agricultural sector with a special focus on Solapur district, a region heavily reliant on agriculture. Using secondary data from 2022-23, 2023-24, and 2024-25, this paper evaluates the extent to which GST has affected input costs, supply chains, and farmer income. Data is represented through graphs and tables to ensure clarity and depth. The findings suggest both positive and negative consequences of GST, indicating a need for policy refinement to ensure agricultural sustainability and farmer welfare. The study reveals that while primary agricultural produce remains exempt under GST, indirect effects such as increased input costs and transportation charges have posed challenges for small and marginal farmers. The paper concludes by suggesting policy measures to enhance awareness and streamline the taxation process to ensure inclusive growth in the agricultural sector under the GST regime.