IMMA request govt to bring all Micronutrients under uniform GST slab

IMMA request govt to bring all micronutrients under uniform GST slab

The Union Finance Ministry has agreed to examine the Indian Micro-Fertilizers Manufacturers Association’s (IMMA) request to bring all micronutrients under a uniform Goods and Services Tax (GST) slab. The issue will be taken up in consultation with the Agriculture Ministry, officials said.

A delegation from IMMA met officials of the Central Board of Indirect Taxes and Customs (CBIC) in New Delhi on September 12. The association sought to keep all fertilisers covered under the Essential Commodities Act (ECA) and the Fertiliser Control Order (FCO), including micronutrients, their mixtures, and non-subsidised grades, within the 5% GST slab.

Inverted duty structure a concern

Officials acknowledged the industry’s concerns over the inverted duty structure but said it would remain as long as multiple GST rates exist. They also clarified that refunds on GST for stock-in-trade were not allowed under the law. Dealers, they said, should adjust such GST against future tax liabilities.

On refunds for manufacturers facing inverted duty (where input taxes are higher than output taxes), officials said they recognised the challenge of paying 18% GST on inputs. They assured that a speedy refund notification will be issued along with the rollout of GST 2.0, which is scheduled to begin on September 22. Also Read | Is India’s Pesticide Market Transforming Toward Sustainable Innovation.

Industry seeks relief

IMMA urged the government to avoid moving fertilisers into the 18% GST slab, warning that it would push up farm-gate prices and block working capital, hurting both manufacturers and farmers. The association also requested fast-tracking of refunds for any accumulated tax credit and suggested a 30-day time-bound refund mechanism for fertiliser manufacturers.

In return, the IMMA delegation assured the government that the industry would not indulge in profiteering and committed to passing on tax savings directly to farmers through price reductions or by holding current MRPs.