The Fertilizer Association of India (FAI) has urged the Centre to bring Goods and Services Tax (GST) rate on ammonia and sulphuric acid, which are key raw materials in the production of di-ammonium phosphate (DAP) and complex (combination of nutrients) fertilisers, at par with their finished products at 5 per cent from the current 18 per cent.
A delegation of FAI, including P S Gahlaut, Managing Director of Indian Potash Ltd (IPL), S Sankarasubramanian, Managing Director and CEO of Coromandel International and Suresh Kumar Chaudhari, Director General of FAI, met Finance Minister Nirmala Sitharaman on August 26 and requested her to make the changes in next GST Council meeting.
Pointing out that Phosphorus (P) and Potash (K) fertilizers attracted 5 per cent GST, FAI said GST rates on inputs for manufacturing P&K fertilizers attract a GST rate of 18 per cent, packing materials and other inputs too are taxed at slabs above 5 per cent.
