 "Fertiliser stocks surge up to 18% after GST Council cuts tax rate to 5%")
Fertiliser stocks 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%.
The decision was taken on the eve of the mega launch of GST. CLICK HERE FOR THE FULL REPORT
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.
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