Nine fertiliser shares rose by 0.37% to 10.92% on BSE on after the government announced reduction in the GST rate of fertilisers to 5% from the existing 12%.
Gujarat Narmada Valley Fertilizers & Chemicals (up 6.4%), Chambal Fertilisers & Chemicals (up 2.38%), Fertilisers & Chemicals Travancore (up 4.92%), National Fertilizers (up 3.59%), Zuari Global (up 0.37%), Coromandel International (up 3.09%), Tata Chemicals (up 3.41%), Gujarat State Fertilizers & Chemicals (up 7.47%) and Deepak Fertilisers & Petrochemicals Corporation (up 10.92%) edged higher. Rashtriya Chemicals and Fertilisers was unchanged at Rs 76.15.
Meanwhile, the S&P BSE Sensex was up 300.01 points, or 0.97% at 31,221.62
Union Minister for Chemicals & Fertilizers and Parliamentary Affairs, Ananthkumar said that the GST rate of fertilizers was reduced to 5% from the existing 12%. The decision was primarily taken in the interests of the farmers. The announcement was made following the 18th meeting of the GST Council held on 30 June 2017.
Farmers would benefit to the tune of Rs 1261 crore under GST regime. Under the new GST rates announced by the GST Council, average weighted MRP will decrease to Rs 5909/ Ton (or Rs 295.47/ 50kg bag) as compared to the existing all India weighted average of Rs 5923/ Ton (or Rs 296.18/50 kg bag).
The GST regime, apart from integrating the entire fertilizer market into a single market, will also deter inter-state smuggling of fertilizers which may be currently happening due to differing levels of taxes and consequently MRPs in different adjoining states.
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The Goods and Services Tax came into force from 1 July 2017, amid a historic midnight session in the Central Hall of Parliament on 30 June 2017. The biggest tax reform since independence - GST - will pave the way for realization of the goal of One Nation - One Tax - One Market.
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