Shares of Fertilizers & Chemicals Travancore fell by 9.5% to day’s low of Rs 1,026 while those of GNFC and Gujarat State Fertilizer & Chemicals were down by 5.3% to Rs 678 and Rs 238.35 respectively.
Madras Fertilizers share price was down by 6.3% in early trading session today and Rashtriya Chemical Fertilizers fell by 6.7% to Rs 193.60 on BSE. Shares of Deepak Fertilisers & Petrochemicals dipped 5.8% to day’s low of Rs 647.30.
National Fertilizers’ shares went down by 8% to Rs 129.55 while other fertilizer stocks like Chambal Fertilisers and Coromandel International were down by 3.2% and 3.7% respectively.
The GST council discussed the recommendations made by the Standing Committee on Chemicals and Fertilisers in February to reduce GST on nutrients and raw materials in the interest of fertilizer manufacturing companies and farmers.Currently, GST at a 5% rate is charged on fertilizers, while raw materials like Sulphuric Acid and Ammonia face a higher GST at 18%.Talking to reporters after the 53rd GST council meeting, P Keshav, Finance Minister Andhra Pradesh said the proposal to reduce the GST rate on fertilizers has been referred to the Group of Ministers (GoM).The issue of further reduction of tax on fertilizers was placed before the GST council in its 45th and 47th meetings held in September 2021 and June 2022, though the council did not recommend any change in rates.
Saturday’s Council meeting was held after eight months. The 52nd GST Council meeting took place on October 7, 2023.
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