1.  Fertilisers prices to come down marginally after GST

 Fertilisers prices to come down marginally after GST

Fertiliser prices will come down marginally with GST rate being slashed to 5 per cent from 12 per cent proposed earlier, a decision taken in the interest of farmers, Union minister Ananth Kumar said today.

By: | New Delhi | Published: July 1, 2017 2:33 AM
GST, GST rollout, gst launch in India, New tax regime launched, Narendra Modi, Narendra Modi gst, gst New tax regime, 5 key takeaways, narendra modi speech, Goods and Services Tax, gst launch, gst news Fertilisers prices to come down marginally after GST. (IE)

Fertiliser prices will come down marginally with GST rate being slashed to 5 per cent from 12 per cent proposed earlier, a decision taken in the interest of farmers, Union minister Ananth Kumar said today. The reduced GST rate will bring down burden on farmers by Rs 1,261 crore, Chemicals and Fertilisers Minister Ananth Kumar told reporters here. “Prices of urea, DAP, MoP, and mixed fertilisers will come down marginally with reduction in GST rate from 12 per cent to 5 per cent,” he said. Kumar claimed that the reduced GST rate on fertilisers will help in bringing prosperity in rural areas. “I feel the GST, which is going to be unfolded is focused on goan, garib and kisan. A new history been created again with GST rollout,” he added. Post GST, the average weighted MRP will decrease to Rs 5,909 per tonne (or Rs 295.47/50 kg bag) as compared to the existing all-India weighted average of Rs 5,923 per tonne (or Rs 296.18 per 50 kg bag.)

Under the GST regime, there will be a uniform MRP of Rs 295.47 per 50 kg bag across the country except few states where additional VAT is charged on natural gas. However, even in these states MRP will reduce by Rs 3 per 50 kg bag. Similarly, the 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. The government has asked the industry to pass on the benefits to farmers. The GST Council today reduced the GST rate on fertilisers to 5 per cent from 12 per cent because of apprehensions of rate of crop nutrient going up.

At present, taxes on fertilisers are in the range of 0-6 per cent in different states. Retail price of urea, which is fixed by the government, is at Rs 5,360 per tonne now. The prices of DAP and potash, fixed by private companies, are at Rs 22,000 and Rs 11,000 per tonne, respectively.

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