In a significant move aimed at bolstering the cooperative sector, the Tamil Nadu government has requested the Centre to exempt cooperative societies from Goods and Services Tax (GST), income tax, and Tax Deducted at Source (TDS) deductions. The appeal was made by the State Minister for Cooperation, K.R. Periyakaruppan, during a meeting with Union Minister for Home Affairs and Cooperation, Amit Shah, in New Delhi.
The Tamil Nadu government has put forward a detailed memorandum to the Centre, outlining key demands that would provide vital support to the cooperative sector in the state. One of the primary requests is the complete exemption of cooperative societies from GST, income tax, and TDS deductions. According to Periyakaruppan, this move will help reduce the financial burden on cooperatives and encourage their growth, especially in rural and agricultural areas where such societies play a crucial role.
In addition to tax exemptions, Periyakaruppan called on the Union Minister to direct the National Cooperative Development Corporation (NCDC) to offer loans to cooperative societies in Tamil Nadu at more reasonable interest rates. The minister also sought a separate refinancing facility from the National Bank for Agriculture and Rural Development (NABARD) specifically for Kisan Credit Card – Animal Husbandry (KCC-AH) in loans. This additional funding source is intended to support farmers in meeting their credit.