--- title: "Vermicompost New GST Rate 2026: 0% Rate on Vermicompost, Organic" description: "New GST rate on vermicompost in 2026 is 0% as organic manure is fully GST exempt. Stay GST-compliant with Busy and apply the correct rate automatically." canonical: "https://busy.in/gst-rates/vermicompost/" author: "Hitesh Aggarwal" published: "2025-05-19T11:40:51.000Z" category: "GST Rates" --- - Vermicompost in India is exempt from GST, classified as organic manure with a 0% rate. - Organic manure and bio-fertilizers are also exempt from GST, while branded compost has a 5% rate. - The GST update effective from September 22, 2025, maintains vermicompost's exempt status. - Farmers, organic supply stores, and NGOs benefit from the GST exemption on vermicompost. - Compost sellers dealing with both taxable and exempt goods must maintain separate accounts for compliance. # 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. ## 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](https://busy.in/gst/) law. **Get a Free Demo –** [**Best Billing and Invoicing Software**](https://busy.in/accounting-software/invoicing-and-gst-billing/) Live Demo Available Today ## Raise Purchase Orders for Vermicompost Raw Materials Trusted by 6,00,000+ Users 4.6 Google Rating ## 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 | **Get a Free Trial –** [**Best Accounting Software For Small Business**](https://busy.in/accounting-software/) ## 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](https://busy.in/hsn/) 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. ## About the author **Hitesh Aggarwal** 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? 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