56th Meeting of GST Council has announced a reduction in tax rates for several goods within the agricultural and fertilizer sectors. Key items like Sulphuric acid, Nitric acid, and Ammonia, previously taxed at 18%, will now be subject to a 5% GST rate. A variety of essential agricultural inputs, including Gibberellic acid and specific bio-pesticides, as well as micronutrients used for fertilizers, will see their tax rate drop from 12% to 5%. Additionally, a wide range of tractor-related goods, from rear tractor tyres and tubes to various parts such as gearboxes, clutches, and hydraulic pumps, will also move from an 18% GST rate to 5%. These changes are intended to reduce the cost of farming inputs, potentially benefiting the agricultural sector and farmers.
FERTILIZER OR AGRICULTURE SECTOR
(18% to 5%)
| S. No. | Chapter / Heading / Sub-heading / Tariff item | Description of Goods |
| 1. | 2807 | Sulphuric acid |
| 2. | 2808 | Nitric acid |
| 3. | 2814 | Ammonia |
(12% to 5%)
| S. No. | Chapter / Heading / Sub-heading / Tariff item | Description of Goods |
| 1. | 29 or 380893 | Gibberellic acid |
| 2. | 3808 | The following Bio-pesticides, namely –
1 Bacillus thuringiensis var. israelensis 2 Bacillus thuringiensis var. kurstaki 3 Bacillus thuringiensis var. galleriae 4 Bacillus sphaericus 5 Trichoderma viride 6 Trichoderma harzianum 7 Pseudomonas fluoresens 8 Beauveriabassiana 9 NPV of Helicoverpaarmigera 10 NPV of Spodopteralitura 11 Neem based pesticides 12 Cymbopogan |
| 3. | 28 or 38 | Micronutrients, which are covered under serial number 1(g) of Schedule 1, Part (A) of the Fertilizer Control Order, 1985 and are manufactured by the manufacturers which are registered under the Fertilizer Control Order, 1985 |
(18% to 5%)
| S. No. | Chapter / Heading / Sub-heading / Tariff item | Description of Goods |
| 1. | 4011 | Rear tractor tyres and rear tractor tyre tubes |
| 2. | 4011 70 00 | Tyre for tractors |
| 3. | 4013 90 49 | Tube for tractor tyres |
| 4. | 8408 20 20 | Agricultural Diesel Engine of cylinder capacity exceeding 250 cc
for Tractor |
| 5. | 8413 81 90 | Hydraulic Pumps for Tractors |
| 6. | 8708 | Following parts of tractors namely:
1.Tractor wheel rim, 2. center housing, 3. housing transmission, 4. support front axle |
| 7. | 8708 10 10 | Bumpers and parts thereof for tractors |
| 8. | 8708 30 00 | Brakes assembly and its parts thereof for tractors |
| 9. | 8708 40 00 | Gear boxes and parts thereof for tractors |
| 10. | 8708 50 00 | Transaxles and its parts thereof for tractors |
| 11 | 8708 70 00 | Road wheels and parts and accessories thereof for tractors |
| 12. | 00 | Radiator assembly for tractors and parts thereof; Cooling system for tractor engine and parts thereof |
| 13 | 8708 92 00 | Silencer assembly for tractors and parts thereof |
| 14. | 8708 93 00 | Clutch assembly and its parts thereof for tractors |
| 15. | 8708 94 00 | Steering wheels and its parts thereof for tractor |
| 16. | 8708 99 00 | Hydraulic and its parts thereof for tractors |
| 17. | 8708 99 00 | Fender, Hood, wrapper, Grill, Side Panel, Extension Plates, Fuel Tank and parts thereof for tractors |
Note: The recommendations of the GST Council have been presented in this article containing major item of decisions in simple language for information of the stakeholders. The same would be given effect through the relevant circulars/ notifications/ law amendments which alone shall have the force of law. Author does not promote or state or confirms or guarantee about final decision regarding the implementation of this recommendations and same shouldn’t be a cause of action against author to held responsible for any loss based on this information.
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