Fertilizer Stocks Soar up to 9% as GST Exemption Looms Ahead of Council Meet

Fertilizer stocks surged up to 9% as the Fitment Committee recommended GST exemption, spotlighting companies like NFL and Chambal Fertilizers before the GST Council meeting on June 19, 2024.

Fertilizer shares surged by up to 9% amid recommendations to exempt the sector from GST ahead of the upcoming GST Council meeting. The proposal from the Fitment Committee has put companies like National Fertilizers Limited (NFL), Chambal Fertilizers, and others in the spotlight for the session on June 19, 2024.

In early trading, significant gains were noted in key fertilizer stocks. Chambal Fertilizers rose over 6% to Rs 465.80, while FACT increased by 6% to Rs 918.35. Rallis India and NFL also saw increases of 3% and nearly 7%, respectively, reflecting investor optimism.

Read More: Top Fertilizer Stocks in India

The push to exempt fertilizers from GST is set to be a key agenda item at the first GST Council meeting of Modi Government 3.0 on June 22. This meeting could potentially finalize the removal of GST on fertilizers, influencing stock movements.

The Fitment Committee has forwarded the exemption proposal to the Group of Ministers for further deliberation on rate rationalization. The committee has expressed concerns about potential duty inversion that could arise from a complete GST exemption for fertilizers.

Additionally, the upcoming GST Council meeting may also address GST clarifications on tobacco products. This broader focus on tax reforms underscores the government’s efforts to adjust tax structures that impact various sectors of the economy.

Read More News




Trade Intraday and Futures & Options