Fertilizer stocks including state-run National Fertilisers Limited (NFL), Chambal Fertilisers, Rallis India and FACT among others will gain focus in Wednesday’s session (June 19) as there is a proposal to remove GST or Goods and Services tax on fertilizers.

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In early trade, Chambal Fertilisers were up over 6 per cent at Rs 465.80, FACT traded higher by 6 per cent at Rs 918.35, Rallis India was up 3 per cent at Rs 334.4 and NFL traded up by nearly 7 per cent at Rs 128.5 per share on the BSE.

Importantly, the first GST Council meeting of Modi Government 3.0 is scheduled to be held on June 22 and therein a decision may be taken to remove fertilizers from within the ambit of GST. This is as the Fitment Committee has proposed to exempt fertilizers from GST. The committee has referred the matter concerning fertilisers to the Group of Ministers (GoM) for rate rationalization. The Fitment Committee believes that blanket exemption will lead to duty inversion. Apart from this, there may be clarification on GST of tobacco products.

Also, according to sources, there can be discussion around retrospective tax/GST matters. There are preparations to bring it on the lines of Section 11C of Central Excise. Also, there may be clarification regarding GST on tobacco products, cigarettes, beedis and smokeless tobacco products.