Classification of fertilizers supplied for use in the manufacture of other fertilizers at 5% GST rate- reg.

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..... .Circular No. 54/28/2018-GST of Central Tax) Subject: Classification of fertilizers supplied for use in the manufacture of other fertilizers at 5% GST rate- reg. References have been received regarding a clarification as to whether simple fertilizers, such as MOP (Murate of Potash) classified under Chapter 31,and supplied for use in manufacturing of a complex fertilizer, are entitled to the conc .....

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..... was applied to goods falling under Chapter 31 which are clearly to be used directly as fertilizers or in the manufacture of other fertilizers, whether directly or through the stage of an intermediate product. 3. In the GST regime, tax structure on fertilizers has been prescribed on the lines of pre-GST tax incidence. The wording of the GST notification is similar to the central excise notificati .....

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..... ertilizers or which are used in the manufacturing of complex fertilizers which are further used as soil or crop fertilizers. The phrase "other than clearly to be used as fertilizers" would not cover such fertilizers that are used for making complex fertilizers for use as soil or crop fertilizers. 4. Thus, it is clarified that the fertilizers supplied for direct use as fertilizers, or supplied for .....

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