BASAI seeks govt clarification on GST rates for biostimulants amid regulatory confusion

New Delhi, Sept 22 (PTI) The Biological Agri Solutions Association of India (BASAI) on Monday said it has sought clarification from the government over GST applicable on biostimulants.

Biostimulants, which aid plant growth, have been regulated under the Fertiliser (Control) Order (FCO) 1985 since 2021. As of August, the government has officially notified and fully approved 146 biostimulant products under the FCO.

Addressing a media conference, BASAI President and Chairperson Sandeepa Kanitkar said biostimulants are the need of the hour amid climate change challenges.

"The tool box of the farmer now has to be changed. If it is not changed, then we will end up having the same kind of productivity," Kanitkar said.

Listing out challenges in the sector, BASAI CEO Vipin Saini said there is confusion over GST for biostimulants. "At some places, biostimulants are classified under 5 per cent GST category and in some places under 18 per cent. I believe it should be under 5 per cent category." There is misinterpretation because recently some companies received notices saying biostimulants attract 18 per cent GST, not 5 per cent.

"There is also some kind of ambiguity regarding where to classify in HSN code. We are seeking clarification on this issue," Saini said.

On recent invalidation of provisional registrations for over 8,000 biostimulant products by the government, Kanitkar said the government has notified certain biostimulant products.

"Others who can match up to this notification can definitely bring their biostimulants into the market. A science-based approach has to be there so that the best products reach farmers," she added.

The market size of biostimulants is estimated to be Rs 2,500-3,000 crore in India. PTI LUX TRB