Fertiliser Industry Calls for GST Clarity to Ease Financial Strain

The Fertiliser Association of India is urging for GST clarifications to address financial challenges in the sector. Although tax reforms have made some improvements, structural issues persist in GST value inversion, leading to credit accumulation. A resolution through government intervention is hoped for soon.

The Fertiliser Association of India (FAI) is actively seeking critical clarifications on GST from the government to relieve the financial burdens faced by the fertiliser sector, according to FAI Chairman S Sankarasubramanian.

In an interview with ANI, Sankarasubramanian highlighted that while recent tax reforms have helped, they have not fully resolved issues related to GST value inversion, particularly affecting phosphatic fertilisers. This ongoing challenge is causing a build-up of unused tax credits, despite adjustments made to raw material taxes.

During the FAI Annual Seminar 2025, he emphasized the need for government intervention. The FAI hopes that further clarifications from the Finance Ministry will lead to a resolution, with the industry pressing for refunds on accumulated credits in the phosphatic segment.

(With inputs from agencies.)