Fertilizer stocks such as state-run National Fertilisers Limited (NFL), Chambal Fertilisers, Rallis India and FACT, among others, will be the focus of Wednesday’s session (June 19), as there is a proposal to eliminate GST, or Goods and Services Tax, on fertilizers.
Early in the day’s trading, the BSE saw increases of approximately 7% at Rs 128.5 per share for NFL, 6% at Rs 918.35 for FACT, 3% at Rs 334.4 for Rallis India and 6% at Rs 465.80 for Chambal Fertilisers.
Importantly, a decision to remove fertilizers from the GST’s ambit may be made during the first GST Council meeting of the Modi Government 3.0, which is set for June 22. This comes as the Fitment Committee has proposed exempting fertilizers from GST. The committee has recommended the fertilizer problem to the Group of Ministers (GoM) for rate rationalization. The Fitment Committee feels that broad exemption will result in duty inversion. Aside from that, there may be clarity on the GST on tobacco items.
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