Decision to reduce tax on fertilsers taken in farmers’ interest: Minister

Speed Post News Network

New Delhi : Union Minister for Chemicals & Fertilizers and Parliamentary Affairs Ananthkumar briefed the media on the outcome of the 18th meeting of the GST Council held here on June 30, 2017, regarding Fertilizer sector. The Minister said that it was decided to reduce the GST rate of fertilizers from the existing 12% to 5%.This decision was primarily taken in the interests of the farmers, he said.
Ananthkumar said that farmers would benefit to the tune of Rs 1,261 crores under GST regime. Under the new GST rates announced by the Council, average weighted MRP will decrease to Rs 5,909/ Ton (or Rs. 295.47/ 50kg bag) as compared to the existing All India weighted Average of Rs 5,923/ Ton (or Rs. 296.18/50 kg bag), according to a PIB release.

The GST regime, apart from integrating the entire fertilizer market into a single market, will also deter inter-state smuggling of fertilizers which may be currently happening due to differing levels of taxes and consequently MRPs in different adjoining States. The GST would realize the Prime Minister of India, Shri Narendra Modi’s vision of ‘One Nation, One Market, One Tax’,  Ananthkumar said, according to the PIB release.