Lowering tax rate on fertilizers to help farmers

Union Minister for Chemicals & Fertilizers and Parliamentary Affairs, Ananthkumar briefed the media on the outcome of the 18th meeting of the GST Council, held on 30th June 2017, regarding Fertilizer sector. The Minister said that it was decided to reduce the GST rate of fertilizers from the existing 12% to 5%.

According to the government estimates, with this move farmers would benefit to the tune of Rs. 1261 crores under GST regime. Under the new GST rates announced by the Council, average weighted MRP will decrease to Rs. 5909/ Ton (or Rs. 295.47/ 50kg bag) as compared to the existing All India weighted Average of Rs 5923/ Ton (or Rs. 296.18/50 kg bag).

Consequent to the ushering in of the GST regime, Ananthkumar informed, there will be a uniform MRP of Rs.295.47 per 50 kg bag across the country except couple of States where additional VAT is charged on the natural gas as Natural gas has not been brought within the ambit of GST.

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