Quick Summary
The Union Finance Ministry has assured the Indian Micro-Fertilizers Manufacturers Association (IMMA) that it will consider the industry's request for a uniform GST rate on all micronutrient fertilisers covered under the Fertiliser Control Order (FCO). The assurance came during a meeting between IMMA representatives and senior officials of theCBICin New Delhi on September 12. Ministry officials clarified that the matter would be reviewed in consultation with the Agriculture Ministry before a dec
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FAQ :
The IMMA is requesting a uniform GST rate of 5% for all fertilisers, including micronutrient fertilisers and mixtures, whether subsidised or non-subsidised.
The industry claims the current multiple GST rates create an 'inverted duty structure', where input taxes are higher than output taxes, impacting working capital.
The Finance Ministry has assured the IMMA that it will consider the request for a uniform GST rate and review the matter in consultation with the Agriculture Ministry.
Officials have agreed to fast-track refunds for the inverted duty structure and assured that a speedy refund notification will be issued alongside the rollout of GST 2.0.
Industry representatives warned that shifting fertilisers to higher GST slabs, such as 18%, would increase farm-gate prices, block working capital, and negatively affect farmers and manufacturers.
The IMMA has pledged that any tax savings resulting from a uniform GST framework will be directly passed on to farmers through reduced MRP or price stability.
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