GST on Pesticides: Rates, Agri-Exemptions & Sector Impact
Pesticides are essential for protecting crops from pests, diseases, and insects, helping farmers secure better yields. But how are they taxed under GST? While fertilizers enjoy concessional rates or exemptions, GST on pesticides is comparatively higher. In this blog, we’ll break down GST rates on pesticides, relevant HSN codes, input tax credits, and their overall impact on the agriculture sector.
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Is GST Applicable on Pesticides?
Yes, pesticides are taxable under GST. They are considered chemical-based products and are not exempt like some other agricultural inputs. The GST for pesticides applies uniformly across India, simplifying compliance but also increasing costs for farmers and agri-businesses. Learn how this compares with GST on fertilizers.
GST Rate on Pesticides
| Product Category | GST Rate |
|---|---|
| Pesticides (all types) | 18% |
| Insecticides, Fungicides | 18% |
| Herbicides, Weedicides | 18% |
| Rodenticides | 18% |
Compare this with GST on agriculture products to understand rate disparities.
HSN Code for Pesticides
| Product | HSN Code | GST Rate |
|---|---|---|
| Pesticides/Insecticides | 3808 | 18% |
| Fungicides/Weedicides | 3808 | 18% |
Refer the correct HSN during GST return filing to avoid penalties.
Input Tax Credit (ITC) on Pesticides
Businesses such as agri-input dealers, pesticide manufacturers, and large-scale farms can claim ITC on the 18% GST paid on pesticides.
To claim ITC:
- Must be GST-registered
- Purchases should be for business or agricultural supply
- A valid GST invoice must be maintained
Explore more on Input Tax Credit eligibility for agribusinesses.
Comparison with GST on Fertilizers
| Input Type | GST Rate |
|---|---|
| Fertilizers | 5% |
| Pesticides | 18% |
Impact on Agriculture Sector
- Increased Input Costs: Farmers pay more for pest control than nutrient supply.
- Limited ITC Benefit: Only large-scale or registered agri-businesses benefit from ITC.
- Reduced Affordability: Small-scale farmers may reduce pesticide usage, affecting productivity.
Read about GST impact on agriculture for broader implications.
Conclusion
The GST on pesticides stands at 18%, making them one of the more heavily taxed agri-inputs. While this simplifies taxation for dealers and manufacturers, it increases costs for farmers—especially those not registered under GST. Aligning the tax rate with fertilizers could benefit the agricultural sector and support food security. For now, accurate HSN classification and billing are essential for GST compliance and input tax credit claims.
As a Chartered Accountant with over 12 years of experience, I am not only skilled in my profession but also passionate about writing. I specialize in producing insightful content on topics like GST, accounts payable, and income tax, confidently delivering valuable information that engages and informs my audience.
Frequently Asked Questions (FAQs)
- What is the GST on pesticides in India?Pesticides attract 18% GST under HSN code 3808.
- Are pesticides exempt from GST like fertilizers?No, fertilizers attract 5% GST, but pesticides are taxed at 18%.
- Can farmers claim ITC on pesticide purchases?Only if they are GST-registered businesses. Most small farmers cannot claim ITC.
- What is the HSN code for insecticides and fungicides?The HSN code is 3808 for all pesticide-related products.
- Is there a chance the GST on pesticides will be reduced in the future?Several industry bodies have requested it, but as of now, the rate remains at 18%.
