New GST on Fertilizers in India: Comprehensive Guide
- The fertilizer GST rate is generally 5% for fertilizers covered under applicable Chapter 31 classifications, including many products used for agriculture.
- GST on fertilizer depends on the product type, composition, and applicable HSN classification.
- Fertilizers covered under HSN 3105 (mineral or chemical fertilizers containing two or three fertilizing elements) generally attract 5% GST.
- Different fertilizer-related products may have different GST treatment depending on their classification.
- Businesses should mention the correct fertilizer HSN code and GST rate while issuing invoices.
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 Rate on Fertilizers in India
The applicable GST rates for major fertilizer categories after 22 September 2025 are provided below. Fertilizers are classified under Chapter 31 of the HSN (Harmonized System of Nomenclature) based on their composition and product classification.
New GST Rates and HSN Codes for Fertilizers
| Fertilizer Type | HSN Code | New GST Rate (After 22 Sep 2025) | Old GST Rate (Before 22 Sep 2025) |
|---|---|---|---|
| Animal or vegetable fertilizers, including organic manure | 3101 | 5% / Nil depending on classification | 5% / Nil depending on classification |
| Mineral or chemical fertilizers, nitrogenous | 3102 | 5% | 5% |
| Mineral or chemical fertilizers, phosphatic | 3103 | 5% | 5% |
| Mineral or chemical fertilizers, potassic | 3104 | 5% | 5% |
| Fertilizers containing two or three nutrients (NPK fertilizers) | 3105 | 5% | 5% |
Fertilizer Type
HSN Code
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Fertilizer Type
HSN Code
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Fertilizer Type
HSN Code
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Fertilizer Type
HSN Code
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Fertilizer Type
HSN Code
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Note: The applicable GST rate depends on the fertilizer type, composition, and HSN classification. Fertilizers covered under applicable Chapter 31 classifications generally attract 5% GST. Businesses should verify the correct fertilizer HSN code and GST rate before invoicing.
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Detailed Breakdown
- Organic Fertilizers (HSN Code: 3101) – GST Rate: 5% for applicable fertilizer products
- 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.
