The Indian Micro-Fertilizers Manufacturers Association has urged the Centre to extend the 5 per cent GST across all fertilisers notified under the Fertiliser Control Order, expedite refunds of excess GST credits, and implement a unified licensing system ahead of the Union Budget.
While acknowledging GST 2.0 as a “landmark reform” for the sector, particularly the reduction in GST from 12 per cent to 5 per cent on Schedule 1G items and their mixtures, the industry body said manufacturers are now facing an inverted duty structure on certain inputs where raw materials and services attract higher GST than finished products.
“This results in accumulation of excess input tax credit, locking up working capital for manufacturers,” said Rahul Mirchandani, president of the association and chairman of Aries Agro Limited.
The association has called for a “clear and time-bound mechanism” for quick refund of excess GST credits, especially for sectors operating under price-sensitive and regulated .​The Indian Micro-Fertilizers Manufacturers Association has urged the Centre to extend the 5 per cent GST across all fertilisers notified under the Fertiliser Control Order, expedite refunds of excess GST credits, and implement a unified licensing system ahead of the Union Budget.
While acknowledging GST 2.0 as a “landmark reform” for the sector, particularly the reduction in GST from 12 per cent to 5 per cent on Schedule 1G items and their mixtures, the industry body said manufacturers are now facing an inverted duty structure on certain inputs where raw materials and services attract higher GST than finished products.
“This results in accumulation of excess input tax credit, locking up working capital for manufacturers,” said Rahul Mirchandani, president of the association and chairman of Aries Agro Limited.
The association has called for a “clear and time-bound mechanism” for quick refund of excess GST credits, especially for sectors operating under price-sensitive and regulated . ​Latest News [ SOBAN NEWS: International and National ]
