Fertiliser Industry Urges GST Relief on Raw Materials
The Fertiliser Association of India (FAI) has appealed to the government to reduce GST on raw materials like ammonia and sulphuric acid from 18% to 5% and allow a refund of accumulated input tax credit. The issue was discussed with Finance Minister Nirmala Sitharaman, aiming to address industry challenges before the Diwali festival.
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The Fertiliser Association of India (FAI) has requested a reduction in GST rates on raw materials such as ammonia and sulphuric acid, currently taxed at 18%, to a more manageable 5%. The industry body also seeks a refund of accumulated input tax credit (ITC), which they argue is essential for easing operational strains.
During a meeting with Finance Minister Nirmala Sitharaman on August 26, FAI representatives highlighted these pressing concerns. They explained that GST exemptions on subsidies have led to unutilised ITC, straining the working capital of fertiliser manufacturers and traders.
The finance minister has assured FAI of a thorough examination of these issues, with a potential GST reform plan expected ahead of the Diwali festival. This reform aims to simplify the GST structure and alleviate financial burdens on the fertiliser industry, improving its overall functionality.
(With inputs from agencies.)
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