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As organic farming and eco-friendly practices gain popularity, vermicompost—a natural fertilizer made from worm digestion—has become a staple for farmers, gardeners, and environmentalists alike. But is GST applicable to this green product? This guide explains the vermicompost GST rate in India, and how it’s treated under agricultural and compost-related taxation.
Vermicompost is an organic fertilizer made by decomposing biodegradable waste using earthworms. It’s commonly used in:
Due to its natural and chemical-free nature, it’s classified under agricultural inputs in the GST law.
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| Product Type | GST Status |
|---|---|
| Vermicompost (organic) | Exempt |
| Organic manure | Exempt |
| Bio-fertilizers | Exempt |
| Branded/commercial compost | 5%–12% |
| Compost/Fertilizer Type | GST Rate | Remarks |
|---|---|---|
| Vermicompost | 0% (Exempt) | Classified as organic manure |
| City compost (govt-approved) | 5% | Promoted under Swachh Bharat mission |
| Urea (chemical fertilizer) | 5% | Subsidized chemical fertilizer |
| NPK / DAP (blended fertilizers) | 5%–12% | Based on composition |
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Understanding the vermicompost GST rate in India ensures that eco-conscious suppliers and buyers remain compliant while promoting sustainable agriculture practices.
BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.