NSEShares of Fertiliser manufacturing companies like RCF, National Fertilisers and GNFC along with their peers are trading with cuts between 5% and 10% on Monday after the GST council meeting which took place on Saturday.The GST Council on Saturday has referred the recommendation on exempting the fertiliser sector from the current 5% to the Group of Ministers on Rate Rationalisation.
The standing committee had made this recommendation in February this year to reduce GST on nutrients and raw materials in the interest of fertiliser companies and farmers.Fertilisers are currently taxed at 5% GST, while raw materials like Sulphuric Acid and Ammonia are facing a higher interest rate at 18%.In anticipation of an exemption in GST or further cut in rates for raw materials, shares of these fertiliser companies had surged anywhere between 30% to 35% in the last few trading sessions.
Shares of FACT are trading with losses of 9% on Monday.
This was one of the shares that had seen the biggest surge ahead of the GST Council meeting.
The stock even hit a record high above the mark of ₹1,100 and even crossed ₹70,000 crore in market capitalisation.Analysts, however, were off the belief that a realignment in GST rates is unlikely to have any meaningful impact on fertiliser companies.Out of these fertiliser stocks, shares of GNFC and Chambal fertilisers are currently in the F&O ban, which means no new positions can be created in these stocks.
NSE
Shares of Fertiliser manufacturing companies like RCF, National Fertilisers and GNFC along with their peers are trading with cuts between 5% and 10% on Monday after the GST council meeting which took place on Saturday.The GST Council on Saturday has referred the recommendation on exempting the fertiliser sector from the current 5% to the Group of Ministers on Rate Rationalisation. The standing committee had made this recommendation in February this year to reduce GST on nutrients and raw materials in the interest of fertiliser companies and farmers.Fertilisers are currently taxed at 5% GST, while raw materials like Sulphuric Acid and Ammonia are facing a higher interest rate at 18%.In anticipation of an exemption in GST or further cut in rates for raw materials, shares of these fertiliser companies had surged anywhere between 30% to 35% in the last few trading sessions. Shares of FACT are trading with losses of 9% on Monday. This was one of the shares that had seen the biggest surge ahead of the GST Council meeting. The stock even hit a record high above the mark of ₹1,100 and even crossed ₹70,000 crore in market capitalisation.Analysts, however, were off the belief that a realignment in GST rates is unlikely to have any meaningful impact on fertiliser companies.Out of these fertiliser stocks, shares of GNFC and Chambal fertilisers are currently in the F&O ban, which means no new positions can be created in these stocks.
