Jain Irrigation Systems shares rose more than 4 percent intraday Friday after the GST rates reduced on drip irrigation products.
"The GST on drip irrigation systems including laterals, sprinklers products has been reduced from 18 percent to 12 percent as per decision taken at 25th GST Council Meeting held on January 18," the company said in its filing.
The new GST rates will be effective from January 25, 2018.
The company has decided to pass on this benefit of 6 percent directly to the customers/farmers.
"This is a positive step taken by the government to encourage farmers to invest in efficient irrigation systems which saves water and improves productivity," Jain Irrigation said.
It estimates that this action will have positive impact in the upcoming busy season for its drip irrigation division.
At 11:04 hours IST, the stock price was quoting at Rs 136.80, up Rs 3.60, or 2.70 percent on the BSE.
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