BioVoice News July 2017 Issue 2 Volume 2 | Page 24

GST ROLLOUT: 50 KG FERTILIZER BAG TO NOW COST RS 295.47 ACROSS INDIA The government decided to reduce the GST rate of fertilizers from the existing 12 percent to 5 percent. This decision it said was primarily taken in the interests of the farmers. The government has also taken up with the industry to pass on the benefit to the farmers. Government claims that farmers would benefit to the tune of Rs 1261 crores under GST regime. Under the new GST rates announced by the Council, average weighted MRP will decrease to Rs 5909/ Ton (or Rs 295.47/ 50kg bag) as compared to the existing All India weighted Average of Rs 5923/ Ton (or Rs 296.18/50 kg bag). The GST regime, apart from integrating the entire fertilizer market into a single market, will also deter inter-state smuggling of fertilizers which may be currently happening due to differing levels of taxes and consequently MRPs in different adjoining states. 24 BioVoiceNews | July 2017