Fertiliser stocks jump up to 9% amid hopes of exemption in upcoming GST Council meeting

Fertiliser stocks on Wednesday jumped up to 9% amid hopes of a relief to the sector in the form of Goods and Services Tax (GST) rate rastionalisation when the GST Council meets on June 22, Saturday. Among the top gainers was Chambal Fertilizers & Chemicals whose shares shot-up 9% to hit their 52-week high of Rs 475.85 on the NSE.

Others in the pack including Deepak Fertilizers and Petrochemicals, Coromandel International, Pradeep Phosphates, Gujarat State Fertilizers & Chemicals and Mangalore Chemicals & Fertilizers surged between 7% and 4%.

ETNow today reported the likelihood of relief for the sector with the GST fitment committee recommending to the Group of Minister (GoM) on rate rationalisation or cut in GST on fertilisers. Currently, a GST of 5% is levied on the fertilisers. The sector has been demanding for an exemption from GST on fertilisers. The GoM is expected to take a call on rate rationalisation in the upcoming meeting.


There could be some clarification on GST over tobacco products, cigarettes, bidi, smokeless tobacco, this report said.

ITC shares were trading at Rs 425.85 on the NSE, down by Rs 2.90 or 0.68%. Meanwhile, Godfrey Phillips India shares were trading in the green around 1 pm at Rs 4,279 on the NSE, up by Rs 32.55 or 0.77%.

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