Source: BL
Context:
The Biological Agri Solutions Association of India (BASAI) has urged the government to clarify GST applicability on biostimulants, which are vital for sustainable agriculture and climate resilience.
What Are Biostimulants?
- Definition: Substances or microorganisms that enhance plant growth, nutrient uptake, and stress tolerance.
- Regulation: Brought under the Fertiliser (Control) Order (FCO), 1985 since 2021.
- Approved Products: As of August 2025, the government has officially notified and approved 146 biostimulant products under FCO.
Key Issues Highlighted by BASAI
- GST Confusion
- At present, some authorities classify biostimulants under 5% GST, while others under 18% GST.
- Notices have recently been issued to some companies, asking them to pay 18% GST.
- BASAI argues they should be taxed at 5%, similar to fertilizers, to make them affordable for farmers.
- HSN Code Ambiguity
- Lack of clarity on the correct Harmonized System of Nomenclature (HSN) code for biostimulants is causing compliance issues.
- Invalidation of Provisional Registrations
- Government recently invalidated 8,000+ provisional registrations of biostimulants.
- Only notified products remain valid; others must align with standards to re-enter the market.
Significance
- Promotes sustainable farming and reduces dependency on chemical fertilizers.
- Helps farmers combat climate change challenges (heat, drought, soil degradation).
- A GST clarification will boost industry growth and farmer adoption.
