Decision to reduce Tax Rate on Fertilizers from existing 12% to 5 % under GST taken in the interests of the Farmers
GST regime to deter inter-state smuggling of fertilizers by integrating the entire fertilizer market into a Single Market
Farmers to benefit to the tune of Rs. 1261 crores under GST regime: Shri Ananthkumar
Shri Ananthkumar said that 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, Shri 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. However, even in these States, MRP will reduce by Rs 3 per 50 kg bag. Similarly, MRP of P&K Fertilisers, for which the prices are not administered, are also expected to come down on an average basis as the incidence of tax will be lower than the existing tax on an average, the Minister added.
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’, Shri Ananthkumar said.