such as Shiva Global Agro Industries, Khaitan Chemicals & Fertilizers, National Fertilizers and Gujarat State Fertilizers rallied up to 18% after the Goods and Services Tax Council lowered the rate on fertiliser from 12% to 5% and on tractor parts from 28% to 18%.
Reacting to the development, the stock of Shiva Global Agro Industries surged as much as 17.8% to Rs 88 on the BSE.
Khaitan Chemicals & Fertilizers, Fertilizers & Chemicals Travancore, National Fertilizers and Gujarat State Fertilizers also soared in the range of 4% to 6%.
Finance Minister Arun Jaitley, who heads the GST Council
comprising representatives of states, said the decision to reduce the tax rate
on fertiliser was taken because of apprehensions that price of the crop nutrient may go up.
"Some felt it (12% GST rate) may be a burden on consumer. There was a consensus (in the GST Council) to bring rate to 5%," he told reporters after the 18th meeting of the Council.