GST brings down urea prices, farmers to benefit: Minister

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SME Times News Bureau | 02 Aug, 2017
The all India weighted average MRP of Urea has decreased by 71 paise per bag after implementation of the Goods and Services Tax (GST), Minister of State for Road Transport & Highways, Shipping and Chemicals & Fertilizers, Mansukh L. Mandaviya on Tuesday.

In a written reply to a question in Lok Sabha Mandaviya informed the House that average MRP of Urea has decreased by 71 paise per bag under the new tax regime.

"Therefore, the farmers have directly benefitted from GST," he added.

"Further, there is adequate availability of all subsidized chemical fertilizers across the country and there is no report of any shortage," the Minister said.

Mandaviya stated that GST being an Indirect Tax, the dealers and manufacturers collect it for Government and deposit it to the Government treasury. Prior to the implementation of GST, the farmers of different States were paying different taxes (Excise Duty and VAT) ranging between 1% to 7%. With the introduction of uniform GST at 5%, the farmers of different States are liable to pay uniform tax amount.

The prices of P&K fertilizers have decreased in majority of States after implementation of GST, he added.