Classification of fertilizers supplied for use in the manufacture of other fertilizers at 5% GST rate- reg.

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...., New Delhi Dated, 9th August, 2018 To Principal Chief Commissioners/Principal Directors General, Chief Commissioners/Directors General, Principal Commissioners/Commissioners, All under CBIC. Madam/Sir, Subject: Classification of fertilizers supplied for use in the manufacture of other fertilizers at 5% GST rate- reg. References have been received regarding a clarificati....

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....2 In the pre-GST regime, the concessional duty rate was prescribed for fertilizers falling under Chapter 31 of the Tariff (notification No. 12/2012-Central Excise). This concessional rate was applied to goods falling under Chapter 31 which are clearly to be used directly as fertilizers or in the manufacture of other fertilizers, whether directly or through the stage of an intermediate product. ....

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..... 42 to 45 of the III schedule to the notification No. 1/2017 Central Tax (Rate)]. The intention has been to provide concessional rate of GST to the fertilizers which are used directly as fertilizers or which are used in the manufacturing of complex fertilizers which are further used as soil or crop fertilizers. The phrase "other than clearly to be used as fertilizers" would not cover such fertili....