Indian fertiliser firms will benefit from a tax cut on fertiliser - grade phosphoric acid as the goods and services tax ( GST ) was reduced from 18 % to 12 % . The GST Council chose to cut the rate , as the 18 % duty on both fatty acid and ammonia , in combination with a 5 % tax cut on fertilisers , was causing an increase in input tax credits for the industry . Manufacturers should now see a lower working - capital blockage , according to regulatory agency ICRA , but the industry prefers the tax for both phosphoric acid and ##monia to be reduced to 5 % to remove the inverted duty structure .
Indian fertiliser firms will benefit from a tax cut on fertiliser-grade phosphoric acid as the goods and services tax (GST) was reduced from 18% to 12%. The GST Council chose to cut the rate, as the 18% duty on both phosphoric acid and ammonia, in combination with a 5% tax rate on fertilisers, was causing an increase in input tax credits for the industry. Manufacturers should now see a lower working-capital blockage, according to ratings agency ICRA, but the industry prefers the tax for both phosphoric acid and ammonia to be reduced to 5% to remove the inverted duty structure.