Fertilizers include several substances and mixtures used mainly to supply vital nutrients to plants for their healthy growth and improving agricultural productivity. If you are dealing with fertilizers for agriculture in India, you must be aware of Chapter 31, which provides details related to the GST rate and HSN code for fertilizers.
The blog post will highlight the GST rates and HSN codes of Chapter 31 to guide businesses belonging to the fertilizer and agriculture industry.
GST Rates and HSN Codes for Fertilizers as per Chapter 31
| HSN Code/Codes | Brief Description | Effective Date | Rate | CESS % |
| 3101 | Vegetable, animal, or organic fertilizers, along with other related goods placed in unit containers and bearing certain brand names | July 1, 2017 | 5% | NA |
| 3101 | Every type of organic manure or goods excluding the ones placed in unit containers and the ones-
Contains a registered brand name Contains a brand name, on which enforceable right or claim is available in the law court Excludes any enforceable right or actionable claim concerning a brand name that has forgone voluntarily |
July 1, 2017 | 5% | NA |
| 3101 and 310100 | Animal or vegetable fertilizers, whether chemically treated or mixed
Fertilizers produced via chemical treatment or mixing of vegetable/animal products |
July 1, 2017 | 5% | NA |
| 31010010, 31010091, 31010092,
and 31010099 |
Animal or vegetable fertilizers, whether chemically treated or mixed
Fertilizers produced via chemical treatment or mixing of vegetable/animal products Vegetable or animal fertilizers whether chemically treated or combined |
July 1, 2017 | 5% | NA |
| 3102 | Nitrogenous and other chemical or mineral fertilizers excluding the ones clearly not used as fertilizers | July 1, 2017 | 5% | NA |
| 3102 | Nitrogenous and other chemical or mineral fertilizers clearly not used as fertilizers | July 1, 2017 | 18% | NA |
| 3103 | Chemical fertilizers or minerals, phosphatic fertilizers/minerals, except the ones not clearly used as fertilizers | July 1, 2017 | 5% | NA |
| 3103 | Chemical fertilizers or minerals, phosphatic fertilizers/minerals not clearly used as fertilizers | July 1, 2017 | 18% | NA |
| 3104 | Potassic, chemical fertilizers, and minerals excluding those not clearly used as fertilizers | July 1, 2017 | 5% | NA |
| 3104 | Potassic, chemical fertilizers, and minerals not clearly used as fertilizers | July 1, 2017 | 18% | NA |
| 3105 |
|
July 1, 2017 | 5% | NA |
| 3105 |
|
July 1, 2017 | 18% | NA |
Explanations on HSN Codes and Fertilizers’ Categories
HSN Code 3101
The products available under HSN 3101 code consist of vegetable or animal fertilizers whether chemically treated or mixed. This category also includes fertilizers produced by chemical treatment or mixing of vegetable and animal products. Common examples include the following-
- Animal excreta, like horse, cow, and poultry manure
- Compost fertilizer made from food waste, and plant matter
- Bone meal and fish meal made from grounded/dried animals and fish respectively
HSN Code 3102
HSN Code 3102 is for all sorts of fertilizers except packaged goods, which are as follows-
- Both pure and impure forms of ammonium nitrate, sodium nitrate, double salts
- Mixtures of ammonium nitrate and calcium nitrate or magnesium nitrate and calcium nitrate
- Both pure and impure forms of urea and calcium cyanamide treated with oil or not
- Fertilizers mixed with inorganic non-fertilizing substances, like gypsum and chalk
- Liquid fertilizers comprised of mixtures or goods in aqueous solution
HSN Code 3103
HSN Code 3103 is for every item under the below categories-
- Goods comprised of basic slag, natural phosphates in calcined form or heat-treated to remove their impurities
- Single, double, and triple superphosphates
- Calcium hydrogen orthophosphate of below 0.2% by fluorine weight calculated on any dry anhydrous product
- Fertilizers comprised of all goods consist of slag and phosphates combined without considering the limit of fluorine content
- Fertilizers comprised of diverse goods without considering the limit of fluorine content and mixed with gypsum, chalk, and several other inorganic non-fertilizing components
HSN Code 3104
HSN Code 3104 is for fertilizers and goods belonging to the following category excluding any packaged foods-
- Potassium salts in crude and natural form, like sylvite, kainite, and carnallite
- Pure and impure forms of potassium chloride
- Pure and impure forms of potassium sulfate
- Pure and impure forms of magnesium potassium sulfate
- Combination of the goods and fertilizers described under the category of 3104
Read More – GST Rate & HSN Code for Pharmaceutical products – Chapter 30
Conclusion
The tax structure on fertilizers associated with the GST regime is mentioned in the pre-GST tax incidence. The data related to GST notification is like the notification highlighted in the central excise. However, you will find a few changes to fulfill the GST requirements. Such changes are necessary, as GST applies only to the supply of goods and the central excise duty was on their manufacturing only.
Accordingly, fertilizers under the category of Chapter 31 attract diverse GST percentages. Individuals involved in the fertilizers business in any way must be aware of the GST Rates and HSN Codes applicable for fertilizers belonging to diverse categories in India.
Furthermore, understanding the HSN code system lets agricultural businesses and farmers classify their fertilizers accurately to reduce both the import and export costs of the respective products. Also, appropriate use of and timely payment of the applicable GST rates will ensure sustainable agriculture.
Frequently Asked Questions
What is the latest GST rate for organic and vegetable fertilizers?
Organic and vegetable fertilizers are categorized under HSN 3101, because of which their applicable GST is 5%.
Why one should learn the HSN Code?
Learning the HSN code system lets businesses classify and categorize their internationally traded goods accurately.
How can I determine the HSN code applicable to my product appropriately?
Use the search tool associated with the HSN code to determine the right code for your product.
Disclaimer: The rates and HSN codes are given above to the best of our knowledge and information. There may be various variations due to updates by the government. If you need any information regarding HSN code and GST rates then please visit CBIC website.
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