The Indian Micro-Fertilizers Manufacturers Association (IMMA) has formally solicited revisions from the central government in advance of the upcoming Union Budget. Among their key proposals are the extension of the 5% Goods and Services Tax (GST) to encompass all fertilizers regulated under the Fertiliser Control Order, the acceleration of GST credit refunds to enhance liquidity for manufacturers, and the establishment of a unified licensing framework to streamline regulatory compliance. These requests were articulated by IMMA’s president, Rahul Mirchandani.
The group admired GST 2.0 as a major improvement, specifying the GST reduction from 12 per cent to 5 per cent on Schedule 1G items and their mixtures. However, manufacturers are facing issues with an inverted duty structure where they pay higher GST on raw materials than on finished products.
“This results in accumulation of excess input tax credit, locking up working capital for manufacturers,” Mirchandani, president of the association and chairman of Aries Agro Limited, expressed.
The association asked for faster GST refunds of extra credits, particularly crucial for price-controlled sectors such as fertilisers. As per Mirchandani, “Faster refunds will directly ease working capital stress and enable manufacturers to invest more in quality, capacity, and farmer outreach.”
IMMA is forcing a uniform 5% GST on all listed fertilisers under the FCO. “A common GST rate will ensure a level playing field, prevent classification disputes, and promote innovation without tax distortions,” Mirchandani added.
For facilitating business, the group has specified the ‘One Nation, One License’ system. They recommended making an online database for license documents that all states can access. The same shall surge marketing permissions and lessen the paperwork.
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According to Mirchandani, the existing system of getting separate licenses for distinct states and districts forms delays and enhances costs. Making the same process easier shall support both manufacturers and farmers in getting better access to quality products.
