Amendment in CGST Act: Changes in Tax Rates for Fertilizers

The Central Government introduces amendments to the CGST Act (12 of 2017) through notification No. 1/2017-Central Tax (Rate) on June 28, 2017.

Schedule I under 2.5% tax rate sees the addition of new serial numbers covering various types of mineral or chemical fertilizers. Fertilizers nitrogenous, phosphatic, potassic, and those containing two or three fertilizing elements now fall under the 2.5% tax bracket.

Schedule II sees the omission of serial numbers 66, 67, 68, and 69, resulting in changes to the taxation of certain goods. Amendments are effective from July 1, 2017, aiming to streamline tax rates for fertilizers.

Government's move supports the agricultural sector by ensuring appropriate tax treatment for essential inputs. The amendment underscores efforts to simplify and rationalize the tax structure for key agricultural products.