GST has special significance for fertilizer sector. And currently allowed number of tax concessions on both input and output levels. But there is also heavy subsidy on sale of fertilizers. However, impact on fertilizer industry will depend on how these elements are traded under GST regime. Hence, see GST effect on fertilizer. You can also check hs code for organic fertilizer.
GST rate on Fertilizers
Further, at present, major inputs like natural gas and petroleum products of fertilizers are not proposed to be covered under GST. Moreover, some of items under fertilizers like Urea are expected to exempt from GST in India. Hence, check New GST tax rates before and after GST 2017
However, under GST regime tax will be levied on inter-state transfer of goods between parties as well. As result of this, higher taxes will be paid upfront by industry. In case of fertilisers dispatch leading to increased working capital requirements.
Apart from rise in tax rate, natural gas, raw material for urea manufacturing has been kept out of GST. Therefore tax on fertilisers to 12 per cent under new GST regime is likely to hit farmers and manufacturers alike. Hence, find below GST rate slabs with HSN code.
Fertilizers taxed at NIL (Zero rates) rate of GST
Organic manure, other than put up in unit containers and bearing a brand name are taxed at NIL rates.
Fertilizers taxed at 12% rate of GST
Fertilisers, other than are clearly not to be used as fertilizers -31 are taxed at 5% and all goods which are clearly not to be used as fertilisers -31 are taxed at 12%.
Fertilizers taxed at 18% rate of GST
All goods which are clearly not to be used as fertilisers -31
Finally, see HSN code for pesticides. And you can also see Fertilizer HS code in India. However, for better understand see Impact of GST on fertilizer. But check GST rate for pesticides. Hence, see HS code for urea. Therefore see Good news for farmers tax rate reduce on fertilizers from 12% to 5%