Question: What is the new GST rate on fertilizers as decided in the 18th meeting of GST council held on June 30, 2017?
(a) 12 percent
(b) 5 percent
(c) 10 percent
(d) 15 percent
Ans: (b)
Related Fact :
- In the 18th meeting of the GST Council, held on 30th June 2017, GST rate on fertilizers was decided to be reduced from the existing 12% to 5%.
- Under the new GST rates announced by the Council, average weighted MRP will decrease to Rs. 295.47/ 50kg bag as compared to the existing All India weighted Average of Rs. 296.18/50 kg bag.
- Consequent to the ushering in of the GST regime, there will be a uniform MRP of Rs.295.47 per 50 kg bag across the country except couple of States where additional VAT is charged on the natural gas as Natural gas has not been brought within the ambit of GST.
- However, even in these States, MRP will reduce by Rs 3 per 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 happening due to differing levels of taxes and consequently MRPs in different adjoining States.
Reference:
http://pib.nic.in/newsite/PrintRelease.aspx?relid=167057