GST Reforms to Benefit Fertilizers Sector
While the GST rates for essential inputs for manufacturing of nitrogenous and NPK fertilizers viz. Ammonia, Sulphuric Acid and Nitric Acid have been reduced from 18% to 5%, it has been reduced from 12% to 5% on micronutrients.
GST Reforms to Benefit Fertilizers Sector
Noida, 22nd September, 2025: National Fertilizers Limited (NFL) has applauded India’s landmark GST reforms, which will provide a big boost to the fertilizer sector. While the GST rates for essential inputs for manufacturing of nitrogenous and NPK fertilizers viz. Ammonia, Sulphuric Acid and Nitric Acid have been reduced from 18% to 5%, it has been reduced from 12% to 5% on micronutrients.
This will encourage the domestic production of fertilizers as the fertilizer companies will save significantly on raw materials costs ensuring the timely availability of fertilizers. Also, this will make fertilizers affordable to farmers.
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Read Also : PFC distributed 100 motorised tricycles to DivyangjansThis reduction in GST for micronutrients from 12% to 5% will significantly encourage PM-PRANAM Scheme (PM Programme for Restoration, Awareness Generation, Nourishment and Amelioration of Mother-Earth) designed to encourage States and Union Territories to reduce their chemical fertilizer use by adopting sustainable farming practices and promoting organic alternatives.
This will promote the ‘Balanced Use of Fertilizers’ ensuring the long term sustainability of soil and plant health. It will directly benefit farmers and FPOs, aligning with Govt.’s Natural Farming Mission.
Read Also : GST Reforms to Benefit Fertilizers Sector