The GST Council has referred the recommendation to exempt fertiliser sector from 5% GST to the Group of Ministers on rate rationalisation. This follows a February recommendation by the Standing Committee on Chemicals and Fertilisers.
Photograph: ANI Photo
New Delhi, Jun 22 (PTI) Andhra Pradesh Finance Minister P Keshav on Saturday said the GST council has referred a recommendation on exempting the fertiliser sector from the current 5 per cent GST to the Group of Ministers on rate rationalisation.
The council discussed the recommendations made by the Standing Committee on Chemicals and Fertilisers in February to reduce GST on nutrients and raw materials in the interest of fertiliser manufacturing companies and farmers.
Currently, GST at a 5 per cent rate is charged on fertilisers, while raw materials like Sulphuric Acid and Ammonia face a higher GST at 18 per cent.
Talking to reporters after the 53rd GST council meeting, Keshav said the proposal to reduce the GST rate on fertilisers has been referred to the Group of Ministers (GoM).
The issue of further reduction of tax on fertilisers was placed before the GST council in its 45th and 47th meetings held in September 2021 and June 2022, though the council did not recommend any change in rates.
Saturday's Council meeting was held after a gap of eight months. The 52nd GST Council meeting took place on October 7, 2023.
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