--- title: "New GST on Fertilizer 2026: 5% Rate on Chemical, Organic" description: "New GST rate on fertilizers in 2026 is 5% on all types of chemical, organic and bio-fertilizers. Let Busy handle GST billing accurately on every transaction." canonical: "https://busy.in/gst-rates/fertilizer/" author: "Madan Murari" published: "2025-05-15T07:31:48.000Z" category: "GST Rates" --- - 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%. # New GST on Fertilizers in India: Comprehensive Guide Understanding the Goods and Services Tax ( [**GST**](https://busy.in/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**](https://busy.in/hsn/) , and answers to frequently asked questions. ## 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. **Get a Free Trial –** [**Best Accounting Software For Small Business**](https://busy.in/accounting-software/) Live Demo Available Today ## Auto-Generate Fertilizer Reorder POs When Stock Dips Low Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## 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. **Get a Free Trial –** [**Best Accounting Software For Small Business**](https://busy.in/accounting-software/) ## 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% **Get a Free Trial –** [**Best GST Accounting Software For Small Business**](https://busy.in/accounting-software/gst-accounting/) ## 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**](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) for businesses dealing in fertilizer manufacturing and sales. **Get a Free Demo –** [**Best Billing and Invoicing Software**](https://busy.in/accounting-software/invoicing-and-gst-billing/) ## Conclusion Understanding the GST rates and [**HSN codes**](https://busy.in/hsn/) 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. ## About the author **Madan Murari** Hi there! I’m a Chartered Accountant with over 20 years of experience in financial accounting and a passion for writing. I enjoy simplifying complex topics like GST and income tax, believing that learning should be a lifelong journey. I'm here to share insights and make financial matters easier for everyone! ## Frequently asked questions ### Are all fertilizers taxed at 5% under GST? No, only fertilizers clearly **intended for use as fertilizers** attract a **5% GST**. Others are taxed at **18%**. ### Do bio-fertilizers fall under the 5% GST category? Yes, **bio-fertilizers** are classified under **HSN code 3101** and attract a **5% GST** rate. ### Are raw materials for manufacturing fertilizers taxed at the same rate? No, raw materials like **sulfuric acid and ammonia** are taxed at a higher rate of **18%**. ### Has the GST rate on fertilizers changed since its implementation? As of now, the GST rate on fertilizers remains at **5%** for those used as fertilizers. ### Are there any exemptions for small-scale farmers regarding GST on fertilizers? Currently, there are **no specific exemptions** for small-scale farmers; the **5% GST** applies uniformly. ## Related articles - [New GST on Skincare Products: Rate, Branding & Retail Pricing](https://busy.in/gst-rates/skincare-products/) - [New GST on Industrial Machinery: Slabs, ITC & MSME Effect](https://busy.in/gst-rates/industrial-machinery/) - [New GST on Restaurant Meals: Dine-in, Takeaway & Delivery Compared](https://busy.in/gst-rates/restaurant-meals/) - [New GST on Kitchen Utensils: What’s Taxed and What’s Not?](https://busy.in/gst-rates/kitchen-utensils/) - [New GST on Online Education: Rate, Exemptions & EdTech Impact](https://busy.in/gst-rates/online-education/) - [New GST on Packaging Materials: Tax Implication Across Industries](https://busy.in/gst-rates/packaging-materials/) - [New GST on Digital Marketing Services: Tax Rates & Input Credit Explained](https://busy.in/gst-rates/digital-marketing-services/) - [New GST on Pesticides: Rates, Agri-Exemptions & Sector Impact](https://busy.in/gst-rates/pesticides/) - [New GST on Butter: From Dairy to Dining – What You Pay](https://busy.in/gst-rates/butter/) - [GST on Honey: Rate, Applicability & Industry Outlook](https://busy.in/gst-rates/honey/)