What is the GST on vermicompost in India?

0% GST . Vermicompost is exempt as it's classified as an organic manure.

Is GST applicable on organic fertilizers?

No. Organic fertilizers, including vermicompost and bio-compost, are exempt from GST.

What if I brand and package vermicompost?

As long as it's classified under organic manure, it remains exempt. However, if treated or rebranded as a chemical enhancer, GST may apply.

What is the GST rate on vermicompost for farming purposes?

Still 0% , as farming and agricultural inputs benefit from GST exemptions.

Do compost sellers need GST registration?

Only if they deal in both taxable and exempt items or if their total turnover crosses the registration threshold.

Vermicompost New GST Rate in India

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.

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GST Rates

New GST Rate on Vermicompost & Compost/Fertilisers in India

The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST rates for vermicompost, compost and related fertiliser items (no compensation cess).

Product Type	GST Status
Vermicompost (organic)	Exempt (0%)
Organic manure	Exempt (0%)
Bio-fertilisers	Exempt (0%)
Branded / commercial compost	5%

New GST Rate on Vermicompost vs Other Compost Products

Compost/Fertiliser Type	New GST Rate	Remarks
Vermicompost	0% (Exempt)	Classified as organic manure
City compost (govt-approved)	5%	Promoted under public sanitation & waste-to-compost schemes
Urea (chemical fertiliser)	5%	Subsidised fertiliser
NPK / DAP (blended fertilisers)	5%	12% slab discontinued; aligned to 5%

What is Vermicompost?

Vermicompost is an organic fertilizer made by decomposing biodegradable waste using earthworms. It’s commonly used in:

Organic farming
Gardening and landscaping
Soil conditioning
Horticulture and agroforestry

Due to its natural and chemical-free nature, it’s classified under agricultural inputs in the GST law.

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Old GST on Vermicompost: Exempt or Taxable?

(Old GST Rates – Applicable Until 21st September)

Product Type	GST Status
Vermicompost (organic)	Exempt
Organic manure	Exempt
Bio-fertilizers	Exempt
Branded/commercial compost	5%–12%

Old GST Rate on Vermicompost vs Other Compost Products

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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Who Benefits from GST Exemption?

✅ Farmers and agricultural cooperatives
✅ Organic farming supply stores
✅ Gardening supply businesses
✅ NGOs working in sustainable agriculture
✅ Home composting solution providers

GST Compliance Tips for Compost Sellers

No GST registration required if you deal only in exempt items like vermicompost
If your business sells both exempt and taxable goods, maintain separate accounts
Clearly label the product as “organic manure/vermicompost” on invoices
Use the correct HSN Code 3101 for organic fertilizers

Understanding the vermicompost GST rate in India ensures that eco-conscious suppliers and buyers remain compliant while promoting sustainable agriculture practices.

Hitesh Aggarwal

Chartered Accountant

MRN No.: 529770

City: Delhi

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

What is the GST on vermicompost in India?

0% GST. Vermicompost is exempt as it's classified as an organic manure.
Is GST applicable on organic fertilizers?

No. Organic fertilizers, including vermicompost and bio-compost, are exempt from GST.
What if I brand and package vermicompost?

As long as it's classified under organic manure, it remains exempt. However, if treated or rebranded as a chemical enhancer, GST may apply.
What is the GST rate on vermicompost for farming purposes?

Still 0%, as farming and agricultural inputs benefit from GST exemptions.
Do compost sellers need GST registration?

Only if they deal in both taxable and exempt items or if their total turnover crosses the registration threshold.

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