Why arecanut sector wants GST reduction for copper sulphate

With the monsoon a fortnight away, arecanut growers are preparing to spray Bordeaux mixture, a fungicide containing copper sulphate, on their crops. However, the price of copper sulphate has increased because of higher copper scrap prices. Another reason for this hike is its classification: copper sulphate used in the Bordeaux mixture is categorised as an industrial product instead of a fertilizer. And, industrial products are taxed at 18 per cent GST, while fertilizers attract a lower 5 per cent GST. 

A Kishore Kumar Kodgi, President of the Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) Ltd, told businessline that copper sulphate is primarily used in agriculture, especially by small growers to control fungal diseases in crops such as arecanut, coffee, rubber, cardamom, pepper, and ginger. Despite being an essential agricultural input, copper sulphate is taxed at 18 per cent GST.

Multiple GST rates such as 5 per cent, 12 per cent, and 18 per cent on products used for the same agricultural purpose (crop nutrition and protection) create classification ambiguities and compliance challenges, he said.