Bhubaneswar, July 29: The state government has asked all dealers to sell the old stock of fertilisers to farmers under the new Goods and Services Tax (GST) regime.

The marketing co-operative federation (Markfed) has also been asked to sell fertilisers, according to new rates. The GST rate of fertilisers was reduced from 12 per cent to 5 per cent.

It has been noticed that manures are being sold at a higher rates to farmers even though its rate has come down after the implementation of the GST. The Centre has also asked the state government to look into the issue.

Co-operation minister Surjya Naryan Patro said: "We have received some complaints. We have asked all the dealers to sell the stocks of the manure according to the new GST. Action will be taken against the dealers if they are caught exploiting the farmers." He further said that if Markfed incurred a loss on account of it, the state government would bear the compensation.

In order to sensitise its officials on the GST, the sate government has decided to organise workshops for its officials. Though the state government feels that that new tax regime is simpler and the tax burden on consumers will be less, lack of knowledge about the GST among the officials creates a lot of hurdles for its implementation. "The consumers are the worst hit," said a senior official.

In the workshop, the officials will be told how the GST will be collected according to the fixed rates for various commodities and services - which will be shared equally between the Centre and the state. Most of the services will be charged at a rate of 18 per cent.

"The state faces the prospect of revenue loss due to lower tax rate on minerals under the new tax regime. We have to do something on this issue," said an official.

However, the government services have been exempted from the coverage of service tax except certain services such as speed post, express parcel and life insurance of postal department and those related to aircraft or vessels and transport of goods or passengers.

Under the new tax regime, the entertainment tax can be levied by the local bodies and not by the state government. "According to the provisions of the GST Act, all registered firms will get 90 per sent of their refund within 30 days," said an official.

Crude, petrol, diesel, aviation turbine fuel, natural gas and alcohol have been kept outside the GST till the GST council decides the date from which the same can be covered. The cess to collected is meant to compensate the loss of revenue of the state government on account of implementation of the GST.