GST Council lowers tax rate on fertiliser to 5%, on tractor parts to 18%

Move could bring down the price of fertiliser as the current tax rates range from 6-8%

Ahead of peak kharif sowing and keeping in mind farmer unrest across the country, the Goods and Services Tax Council lowered the rate on fertiliser from 12 per cent to five per cent and on tractor parts from 28 per cent to 18 per cent.

The decision was taken on the eve of the mega launch of GST.

The move could bring down the price of fertiliser, as the current tax rates are six to eight per cent. Some stockists had started holding on to their inventory in anticipation of a rise in prices, leading to an artificial shortage in some parts.

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