Classification of imported fertilizers used in the manufacture of other fertilizers at 5% GST rate.

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....2018 CIRCULAR (No. 18/2018-19-GST) Subject: Classification of imported fertilizer used in the manufacture of other fertilizer at 5% GST rate-reg. Reference have been received regarding a clarification as to whether simple fertilizer, such as MOP (Murate of Potash) classified under Chapter 31, and supplied for use in manufacturing of a complex fertilizer, are entitled to the concessiona....

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.... goods falling under Chapter 31 which are clearly to be used directly as fertilizers or in the manufacture of other fertilizer, whether directly or through the stage of an intermediate product. 3. In the GST regime, tax structure on fertilizer has been prescribed on the lines of pre-GST tax incidence. The wording of the GST notification is similar to the central excise notification except certa....

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....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 fertilizers that are used for making complex fertilizers for use as soil or crop fertilizers. 4. Thus, it....