New GST on Fertilizers in India: Comprehensive Guide
Quick Summary
- The GST on fertilizers in India is set at 5% for fertilizers clearly intended for agricultural use.
- Fertilizers not clearly intended for use as fertilizers are taxed at a higher rate of 18%.
- The GST rates for fertilizers are standardized across India to help reduce the tax burden on farmers.
- Fertilizers classified under HSN codes 3101 to 3105, including organic and chemical types, are taxed at 5%.
- There are no specific GST exemptions for small-scale farmers, and raw materials for fertilizers are taxed at 18%.
Understanding the Goods and Services Tax ( GST ) on fertilizers is crucial for farmers, manufacturers, and retailers in India. The GST rates vary based on the type of fertilizer and its packaging. This guide provides an overview of the applicable GST rates, HSN codes , and answers to frequently asked questions.
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New GST Rate on Fertilizers in India
The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST rates for major fertilizer categories (no compensation cess).
New GST Rates and HSN Codes for Fertilizers
Fertilizers are classified under Chapter 31 of the HSN (Harmonized System of Nomenclature). The GST rates are as follows:
| Fertilizer Type | HSN Code | GST Rate |
|---|---|---|
| Animal or vegetable fertilizers, including organic manure | 3101 | 5% |
| Mineral or chemical fertilizers, nitrogenous | 3102 | 5% |
| Mineral or chemical fertilizers, phosphatic | 3103 | 5% |
| Mineral or chemical fertilizers, potassic | 3104 | 5% |
| Fertilizers containing two or three nutrients (NPK) | 3105 | 5% |
Note: The 5% GST rate applies to fertilizers clearly intended for use as fertilizers. Those not intended for such use attract an 18% GST rate.
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Old GST Rates and HSN Codes for Fertilizers
(Old GST Rates – Applicable Until 21st September)
Fertilizers are classified under Chapter 31 of the HSN (Harmonized System of Nomenclature). The GST rates are as follows:
| Fertilizer Type | HSN Code | GST Rate |
|---|---|---|
| Animal or vegetable fertilizers, including organic manure | 3101 | 5% |
| Mineral or chemical fertilizers, nitrogenous | 3102 | 5% |
| Mineral or chemical fertilizers, phosphatic | 3103 | 5% |
| Mineral or chemical fertilizers, potassic | 3104 | 5% |
| Fertilizers containing two or three nutrients (NPK) | 3105 | 5% |
Note: The 5% GST rate applies to fertilizers clearly intended for use as fertilizers. Those not intended for such use attract an 18% GST rate.
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Detailed Breakdown
- Organic Fertilizers (HSN Code: 3101) – GST Rate: 5%
- Nitrogenous Fertilizers (HSN Code: 3102) – GST Rate: 5%
- Phosphatic Fertilizers (HSN Code: 3103) – GST Rate: 5%
- Potassic Fertilizers (HSN Code: 3104) – GST Rate: 5%
- Complex Fertilizers (NPK) (HSN Code: 3105) – GST Rate: 5%
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Impact of GST on the Fertilizer Industry
The implementation of GST has standardized the tax structure for fertilizers across India, replacing the previous varying state taxes. This uniformity aims to reduce the overall tax burden on farmers and promote the use of fertilizers in agriculture.
It has also enabled better compliance and made it easier to claim Input Tax Credit for businesses dealing in fertilizer manufacturing and sales.
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Conclusion
Understanding the GST rates and HSN codes for fertilizers is essential for compliance and informed decision-making in the agricultural sector. The standardized 5% GST rate aims to make fertilizers more affordable and support the farming community in India.
