New GST on Pesticides: Rates, Agri-Exemptions & Sector Impact
- The GST rate for all types of pesticides, including insecticides, fungicides, herbicides, and rodenticides, is set at 18%.
- Fertilizers have a lower GST rate of 5%, which is significantly less than the rate for pesticides.
- Pesticides are taxable under GST, unlike some other agricultural inputs, increasing costs for farmers and agri-businesses.
- Businesses can claim an input tax credit on the GST paid for pesticides if they are registered and have valid invoices.
- The high GST rate on pesticides raises input costs for farmers, potentially reducing pesticide usage and affecting crop productivity.
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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New GST Rate on Pesticides & Agrochemicals in India
The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST rates for pesticides and related items (no compensation cess).
New GST Rate on Pesticides
| Product Category | New GST Rate |
|---|---|
| Pesticides (all types) | 18% |
| Insecticides, Fungicides | 18% |
| Herbicides, Weedicides | 18% |
| Rodenticides | 18% |
Product Category
New GST Rate
Product Category
New GST Rate
Product Category
New GST Rate
Product Category
New GST Rate
Note: The 12% slab is withdrawn system-wide; pesticides remain at the standard 18% line under the rationalised structure.
HSN Code for Pesticides
| Product | HSN Code | New GST Rate |
|---|---|---|
| Pesticides / Insecticides | 3808 | 18% |
| Fungicides / Weedicides | 3808 | 18% |
Product
HSN Code
New GST Rate
Product
HSN Code
New GST Rate
Classification tip: Ready-to-use retail packs and bulk technicals typically remain within HSN 3808; ensure correct sub-heading as per formulation.
Comparison with New GST on Fertilisers
| Input Type | New GST Rate |
|---|---|
| Fertilisers (e.g., urea, DAP/NPK as notified) | 5% |
| Pesticides / Agrochemicals | 18% |
Input Type
New GST Rate
Input Type
New GST Rate
Reminder: Under the rationalised schedule, most former 12% lines shift to 5%, and many former 28% lines align to 18%; pesticides continue at 18%.
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 .
Old GST Rate on Pesticides
(Old GST Rates – Applicable Until 21st September)
| Product Category | GST Rate |
|---|---|
| Pesticides (all types) | 18% |
| Insecticides, Fungicides | 18% |
| Herbicides, Weedicides | 18% |
| Rodenticides | 18% |
Product Category
GST Rate
Product Category
GST Rate
Product Category
GST Rate
Product Category
GST Rate
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% |
Product
HSN Code
GST Rate
Product
HSN Code
GST Rate
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 Old GST on Fertilizers
| Input Type | GST Rate |
|---|---|
| Fertilisers | 5% |
| Pesticides | 18% |
Input Type
GST Rate
Input Type
GST Rate
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.
