Unjha’s isabgol trade grinds to a halt over GST
The rulings have created uncertainty among traders in Unjha, where a large part of Rajasthan’s isabgol reaches for processing
Trading of isabgol seeds halted at Unjha Agricultural Produce Market Committee (APMC) for over a month due to conflicting rulings on Goods and Services Tax (GST) that left traders uncertain about billing procedures. Jayanti Patel, a long-time trader at Unjha APMC, expressed confusion among traders regarding billing for seeds coming from Rajasthan.
The dispute centers on whether isabgol seeds purchased from farmers through APMC auctions should be classified as fresh seeds (Nil GST) or dried seeds (5% GST). The Gujarat Authority for Advance Ruling (AAR) ruled in favor of Nil GST on May 29, 2026, while the Rajasthan AAR disagreed on July 27, stating that seeds were dried and should attract 5% GST.
This ruling has created uncertainty, as isabgol is a ₹5,000-crore trade involving 30-35 lakh bags annually and 60,000 to 70,000 farmers, with around 8,000 to 10,000 workers employed in processing units. Isabgol is primarily produced in Rajasthan, with 30% in Gujarat, and about half of the production reaches Unjha. The seeds are processed into isabgol husk, most of which is exported to the United States and Europe, while 10% is sold in the domestic market.
The GST issue had been under discussion for years, with traders paying 5% GST while seeking clarity from the government. The association has filed a fresh application before the Rajasthan AAR, seeking a ruling to resolve the issue and provide a common tax position for isabgol seeds across states.
Written by urgent.news from Hindustan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
