Question : GST on Fertilizers

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

(a) The details of revenue generated by reduction of subsidy on fertilizers during 2014-15 to 2017-18, so far, year and fertilizer wise;

(b) Whether the Government has imposed GST on some types of fertilizers and if so, the details thereof; and

(c) Whether after imposing GST on fertilizers, the burden on farmers will decrease and if so, the details thereof?

Answer given by the minister

MINISTER OF STATE (INDEPENDENT CHARGE) FOR THE MINISTRY OF PLANNING AND MINISTER OF STATE IN THE

MINISTRY OF CHEMICALS & FERTILIZERS

( RAO INDERJIT SINGH)

(a) The year wise and fertilizer wise Budget Allocation on Fertilizer subsidy is placed at Annexure –I.

(b) Yes Madam, Chemical fertilizers attract 5% GST.Organic fertilizers put up in unit container and bearing a brand name attract 5% GST while Organic fertilizers other than put up in unit container and bearing a brand name attract Nil GST. (Information as provided by Department of Revenue).

(c) After the implementation of GST with effect from 1st July, 2017, all India weighted average MRP of Urea Fertilizers has decreased by 71 Paise per Urea Bag. However, since the MRP of P&K Fertilizers is fixed by the Fertilizer companies and varies company-wise and product-wise throughout the country, no such data regarding reduction in MRP is maintained in r/o P&K Fertilizers.
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