Budget 2026: Micro-fertiliser makers pitch reforms; call for uniform GST, single business licence system
The Indian Micro-Fertilizers Manufacturers Association (IMMA) has requested several key changes from the central government ahead of the Union Budget. These include extending 5 per cent GST to all fertilizers under the Fertilizer Control Order, speeding up GST credit refunds, and creating a single licensing system. The association made these demands on Sunday through its president, Rahul Mirchandani, as reported by PTI. The group praised GST 2.0 as a major improvement, particularly noting the GST reduction from 12 per cent to 5 per cent on Schedule 1G items and their mixtures. However, manufacturers are struggling with an inverted duty structure where they pay higher GST on raw materials than on finished products. “This results in accumulation of excess input tax credit, locking up working capital for manufacturers,” said Mirchandani, president of the association anf chairman of Aries Agro Limited, quoted by PTI. The association called for quick refunds of extra GST credits, especially important for price-controlled sectors like fertilizers. According to Mirchandani, “Faster refunds will directly ease working capital stress and enable manufacturers to invest more in quality, capacity, and farmer outreach.” IMMA is pushing for uniform 5 per cent GST on all fertilizers listed under the FCO. “A common GST rate will ensure a level playing field, prevent classification disputes, and promote innovation without tax distortions,” said Mirchandani. The group also urged on ‘One Nation, One License’ system to make business easier. They suggested creating an online database for license documents that all states can access. This would speed up marketing permissions and reduce paperwork. Mirchandani explained that the current system of getting separate licenses for different states and districts creates unnecessary delays and costs. Making this process simpler would help both manufacturers and farmers get better access to quality products.
