Vermicompost New GST Rate in India
- Vermicompost generally attracts 5% GST under the applicable HSN classification.
- The GST on vermicompost depends on its product classification and applicable GST provisions.
- There was no separate GST rate change for vermicompost on 22 September 2025.
- Businesses selling vermicompost should use the correct HSN code and maintain proper GST compliance records.
- GST-registered businesses may claim eligible Input Tax Credit on taxable business purchases, subject to GST conditions.
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 Rate on Vermicompost & Related Products in India
There was no separate GST rate change for vermicompost on 22 September 2025. GST depends on the product classification and applicable HSN code.
| Product Type | HSN Code | GST Rate From 22 Sep 2025 | Rate Before 22 Sep 2025 |
|---|---|---|---|
| Vermicompost | 3101 | 5% | 5% |
| Organic manure covered under applicable classification | 3101 | 5% | 5% |
| Bio-fertilisers | Applicable HSN | 5% | 5% |
| Compost products | Applicable HSN | Depends on classification | Depends on classification |
Product Type
HSN Code
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Product Type
HSN Code
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Product Type
HSN Code
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Product Type
HSN Code
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
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% |
Product Type
GST Status
Product Type
GST Status
Product Type
GST Status
Product Type
GST Status
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.
