IIMA delegation led by its president, Rahul Mirchandani (second from left) before meeting CBIC officials

The Union Finance Ministry has agreed to consider the Indian Micro-Fertilizers Manufacturers Association’s (IMMA) plea for treating all micro-nutrients coming under the Fertiliser Control Order uniformly under the Goods and Services Tax (GST).

However, this would be done in consultation with the Agriculture Ministry, the officials told a delegation of IMMA. The delegation met officials of the Central Board of Indirect Taxes and Customs (CBIC) in New Delhi on September 12.

The IMMA sought keeping all fertilisers covered under the Essential Commodities Act (ECA) and Fertiliser (Inorganic, Organic or Mixed) (Control) Order, 1985 (FCO), including micronutrient fertilisers (& mixtures thereof) and non-subsidised grades — in the 5 per cent GST slab. 

The officials acknowledged the industry’s concern over the inverted duty structure, but they said it would continue as long as multiple GST rates exist. Regarding the refund of GST on stock-in-trade, they said that it was not permissible under the law.  Dealers are expected to adjust such GST against future liabilities, the delegation was told.

Refunds for inverted duty

On refunds for inverted duty structure to manufacturers, the official said they recognise the concern over the higher input of 18 per cent under GST (18 per cent). A speedy refund notification will be issued along with the GST 2.0 notification, they assured. .

The delegation also urged the officials to avoid shifting fertilisers to an 18 per cent slab as this would raise farm-gate prices and lock up working capital, hurting both manufacturers and farmers.  The ministry officials said GST 2.0 would be implemented from September 22. 

The IMMA fast-track refunds of any accumulated tax credit where inversion persists during transition; adopt time-bound (e.g., 30-day) refund service level agreement for fertiliser manufacturers.  

The IMMA delegation committed that the industry would be anti-profiteering, undertaking to pass the tax savings as MRP reductions and/or price holds to benefit farmers immediately upon notification. 

Published on September 14, 2025