NEW DELHI: On the first day under the regime of the Goods and Services Tax (GST), the government said on Saturday that the farmers would immediately benefit to the tune of Rs 1261 crore on account of slashing of tax rates on fertilizers from 12 per cent to five per cent. The 18th meeting of the GST Council on Friday had slashed the tax rate for fertilizers with an aim to lower the burden on the farmers.
Union Minister for chemical and fertilizers Ananth Kumar has called upon the industry to pass on the benefits of the lower tax to the farmers. He said that the government is in touch with the industry to ensure that the benefits, since sowing season is underway, is passed on to the farmers. He also stated that the previous complaints of inter-state smuggling of fertilizers due to price differences because of different rates would now also come to an end.