Good news for farmers tax rate reduce on fertilizers from 12% to 5%

Government has revise rates for certain products under new tax regime. However, Parliamentary affairs and chemicals & fertilizers Union Minister talk to media on fertilizer sector outcome. Therefore Government decided to reduce from existing 12 percent to 5 percent on GST rate for Fertilizers. Hence, check GST rate and HSN code for agricultural implements.

Industry passes benefits to farmers

However, Union Minister for Chemicals and Fertilizers said that decision on GST rates cut on fertilisers is primarily taken in farmers interests. Probably, industry will pass benefit to farmers. And GST rate 28% to 18% on tractor parts. Hence, you can also see GST rate on tractor parts.

Farmers will benefit to Rs.1261 crores Under GST regime. Furthermore, new rate announced by GST council will reduce maximum retail price compared to existing. And minister of Chemicals and fertilizers also informed that there will be MRS of Rs.295.47 per 50 kg bag across country.

Therefore in pre-GST regime, 4-8% fertilizers attract indirect tax depends on raw materials used. But these states in which products were sold. Other than this, many states had raise fear that 12% GST rate offer on fertilizers may increase tax burden on farmers.

As above, those states excluding where additional Value added tax is charges on natural gas. Hence, it has not included within GST. However, MRP will reduce by Rs 3 per 50 kg bag even in these states. And check Types of GST returns

What will change after GST begin

Farmers will spend more money to buy equipment. Like pumps and tractors as well as pesticides in new GST regime. Similarly, fertilizers of P&K MRP price are not administered. And also expect on an average basis to come down.

Therefore tax will be lower than existing tax on an average.GST will increase cost of agricultural inputs. It is clear that rate of tax on two main inputs. Such as machinery and fertilizers. But it is not clear what happens to maximum retail price (MRP).

Apart from GST implement will not just integrate entire fertilizer market into one single tax market. But also restrict inter- state fertilizers of smuggling. Under GST, agricultural commodities like grain, vegetables, fruits and milk will not be taxed.

Finally, see HSN code for agricultural tractor. Hence, for more details see GST impact on farmers. And also see HSN code list of agricultural products. Therefore for more information view GST on agricultural products. Hence, check HSN codes for Fertilisers for GST

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