Biostimulants GST Confusion: BASAI Seeks Clarity on 5% vs 18%
Why in the news
The Biological Agri Solutions Association of India (BASAI) urged the government to settle how GST applies to biostimulants.
Key facts
- Biostimulants: substances or microbes improving growth, nutrient uptake and stress tolerance.
- Under the FCO, 1985 since 2021; 146 products notified by August 2025.
| Issue | Detail |
|---|---|
| GST | Some officials levy 5%, others 18%; BASAI wants 5% like fertilisers |
| HSN code | Correct code unclear |
| Registrations | 8,000+ provisional ones invalidated; only notified products stay valid |
Significance
- Supports sustainable farming and climate resilience.
- Clear GST would aid adoption.
Exam angle
- Governing order: FCO, 1985.
- Rates in dispute: 5% vs 18%.