Budget 2026: Fertiliser Firms Demand GST Overhaul, Unified Licenses
Overview
Indian Micro-Fertilizers Manufacturers Association is urging the government to extend a 5% Goods and Services Tax (GST) to all fertilizers before the upcoming Budget. The industry group also seeks accelerated GST input tax credit refunds and a unified national licensing system to ease working capital constraints and streamline operations, aiming to boost investment and farmer access to quality products.
Stocks Mentioned
Fertiliser Makers Push for Budget Reforms
The Indian Micro-Fertilizers Manufacturers Association (IMMA) has laid out key demands for the upcoming Union Budget 2026. The group is advocating for significant policy shifts including extending the 5% Goods and Services Tax (GST) to all fertilizers regulated under the Fertilizer Control Order (FCO).
Addressing Working Capital Woes
IMMA president Rahul Mirchandani highlighted the persistent issue of an inverted duty structure. Manufacturers are burdened by paying higher GST on raw materials compared to their finished products. This discrepancy results in the accumulation of input tax credits, which ties up essential working capital for these businesses.
Call for Faster Refunds and Unified Licensing
The association stressed the critical need for swift refunds of excess GST credits. Mirchandani noted that faster refunds would directly alleviate working capital stress, empowering manufacturers to increase investments in product quality, production capacity, and farmer outreach programs. IMMA also proposed a 'One Nation, One License' system, suggesting an online database accessible by all states to expedite marketing permissions and reduce bureaucratic delays and costs associated with obtaining multiple state-specific licenses.
