Chemical fertilizer ‘Single super phosphate’ exported out of India is taxable @ 18% GST
Sai Fertilizers (P.) Ltd., In re –  108 taxmann.com 509 (AAR – WEST BENGAL)
The applicant is a manufacturer of chemical fertilizer ‘single super phosphate’ (SSP) used in both agriculture and industry. It intends to export SSP and pay IGST at the applicable rate. It has sought an advance ruling to determine applicable GST rate of SSP when it is exported out of India.
The Authority for Advance Rulings, West Bengal observed that under GST, SSP is taxable at 18% if it is not to be used as fertilizer, otherwise at 5% if it is to be used as fertilizer. Such benefit of concessional tax rate is not available when goods are not to be consumed in India. Therefore, SSP being exported is not be used as fertilizer in India, as the place of supply will be the location outside India.
The Authority for Advance Rulings, West Bengal held that applicant is required to pay GST at 18% as SSP would be exported out of India.