GST Council to Reconsider Tax Reduction for Fertiliser Sector

Andhra Pradesh Finance Minister P Keshav announced that the GST council has referred a recommendation to exempt the fertiliser sector from the current 5% GST to the Group of Ministers on rate rationalisation, following discussions about reducing GST on fertilisers and raw materials to benefit farmers and manufacturers.

Andhra Pradesh Finance Minister P Keshav revealed on Saturday that the GST council has forwarded the recommendation to exempt the fertiliser sector from the current 5% GST to the Group of Ministers on rate rationalisation. This move comes in response to discussions about easing the tax burden on nutrients and raw materials, crucial for fertiliser manufacturers and farmers.

During the 53rd GST council meeting, Keshav mentioned, 'The proposal to reduce the GST rate on fertilisers has been referred to the Group of Ministers (GoM).' The council revisited recommendations by the Standing Committee on Chemicals and Fertilisers from February, advocating for lower GST in the interest of the sector.

As it stands, fertilisers are taxed at 5%, while raw materials like Sulphuric Acid and Ammonia face an 18% GST rate. Previous council meetings in September 2021 and June 2022 addressed the issue but did not result in rate changes. The meeting on Saturday marks the first in eight months, with the 52nd session occurring on October 7, 2023.