HomeEconomy NewsGST Council considers exemption of fertiliser sector from 5% GST
Currently, fertilisers are taxed at 5% GST, while raw materials such as Sulphuric Acid and Ammonia face a higher GST rate of 18%.
By Timsy Jaipuria June 22, 2024, 7:59:06 PM IST (Published)
The GST Council has referred a proposal to exempt the fertiliser sector from the current 5% GST to the Group of Ministers on rate rationalisation. This decision follows discussions on recommendations from the Standing Committee on Chemicals and Fertilisers made in February.
The committee proposed reducing GST rates on nutrients and raw materials to support fertiliser manufacturers and farmers.
Currently, fertilisers are taxed at 5% GST, while raw materials such as Sulphuric Acid and Ammonia face a higher GST rate of 18%.
Previous discussions in the GST Council’s 45th and 47th meetings in September 2021 and June 2022 explored the possibility of further reducing GST rates for fertilisers, but no changes were recommended at that time.
Also read: GST Council recommends uniform 12% rate on milk cans, carton boxes, and sprinklers
(Edited by : Vrushali Sawant)
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