Vermicompost New GST Rate in India
- 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.
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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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% |
Product Type
GST Status
Product Type
GST Status
Product Type
GST Status
Product Type
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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% |
Compost/Fertiliser Type
New GST Rate
Remarks
Compost/Fertiliser Type
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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
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 |
Compost/Fertilizer Type
GST Rate
Remarks
Compost/Fertilizer Type
GST Rate
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Compost/Fertilizer Type
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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.
