Biostimulant Confusion: BASAI Urges GST Clarity Amidst Market Ambiguity

BASAI seeks clarification from the government on GST rates applied to biostimulants, essential for plant growth. Conflicting classifications of GST rates and unclear HSN codes add to industry challenges. BASAI emphasizes the necessity of biostimulants amidst climate change, urging a science-based market approach.

The Biological Agri Solutions Association of India (BASAI) has appealed for government clarification on Goods and Services Tax (GST) rates for biostimulants, crucial for enhancing plant growth.

Since 2021, biostimulants have been under the regulation of the Fertiliser (Control) Order (FCO) 1985, with 146 products officially approved as of August. At a recent media briefing, BASAI President Sandeepa Kanitkar underscored the vital role of biostimulants in tackling climate change, suggesting a shift in traditional farming tools to enhance productivity.

BASAI CEO Vipin Saini highlighted GST classification inconsistencies, as some biostimulants fall under a 5% tax, while others are categorized at 18%. Saini advocates for a uniform 5% GST rate, amid confusion over Harmonized System of Nomenclature (HSN) codes. The invalidation of over 8,000 provisional registrations prompted calls for a consistent, science-driven marketplace approach for biostimulants, valued at Rs 2,500-3,000 crore in India.

(With inputs from agencies.)