The Indian Micro-Fertilizers Manufacturers Association has urged the Centre to extend the 5% GST across all fertilisers notified under the Fertiliser Control Order, expedite refunds of excess GST credits, and implement a unified licensing system ahead of the Union Budget.

While acknowledging GST 2.0 as a “landmark reform” for the sector, particularly the reduction in GST from 12% to 5% on Schedule 1G items and their mixtures, the industry body said manufacturers are now facing an inverted duty structure on certain inputs where raw materials and services attract higher GST than finished products.

“This results in accumulation of excess input tax credit, locking up working capital for manufacturers,” said Rahul Mirchandani, president of the association and chairman of Aries Agro Limited.

On ensuring parity across the fertiliser ecosystem, the industry body has pressed for the 5% GST rate to be extended uniformly to all fertilisers notified under the Fertiliser Control Order (FCO).

”A common GST rate will ensure a level playing field, prevent classification disputes, and promote innovation without tax distortions,” Mirchandani said in a statement issued on Sunday.

The association has also sought the implementation of ’One Nation, One Licence’ to improve ease of doing business. It has proposed a centralised digital repository for all licence-related documents, accessible to all state governments, to enable seamless verification and faster issuance of marketing permissions.

Source: CNBC TV-18