Fertiliser stocks rally up to 15% amid reports of GST relief; GSFC extends gains for 5th day

Shares of leading fertiliser companies rallied up to 15% on Wednesday after reports claimed that the GST Council may provide tax relief to the sector in the upcoming meeting.

Among lead gainers, Gujarat State Fertilizers and Chemicals Ltd (GSFC) rose up to 7% to hit a high of ₹250.25 per share on the NSE in its fifth straight day of gains. The stock closed higher by 2.59% at ₹240 on NSE.

Khaitan Chemicals and Fertilizers rallied up to 15% to hit a high of ₹80 per share before closing higher by 13.15% at ₹77.2 per share.

Chambal Fertilizers and Chemicals hit a 52-week high at ₹475.85 on the NSE before closing 6.51% higher at ₹466.90 apiece.

Fertilizers and Chemicals Travancore Ltd also hit a year-high of ₹942.50 on the NSE. The stock, however, pared early gains to close 4.41% higher at ₹905 apiece.

National Fertilizer Ltd soared 9% to hit a year high of ₹131.32 on the NSE. Later, shares closed higher by 4.53% at ₹125.90.

Rashtriya Chemicals And Fertilizers rose over 11% to hit a 52-week high of ₹194 per share. RCF share closed 7.00% higher at ₹185.50 apiece on the NSE.

Among others, Deepak Fertilisers rose by 4%, Madras Fertilisers was up over 5% and Paradeep Phosphates by over 3%.

Fertiliser stocks rise on expected GST relief

According to a CNBC report, the GST Council in its meeting scheduled on June 22 may provide some relief to fertiliser companies from retrospective demands.

The report suggested that the sectors which paid GST at a lower rate than that later applied by authorities may receive relief from retroactive action.

“The GST Council (GSTC) is considering a proposal to prevent the imposition of higher GST rates when the lower rate was paid due to general trade practices,” the report mentioned.

The report quoting sourcing said that the council may go for an amendment in GST laws.

“The amended GST law will likely disallow GST refunds or cess in cases where higher GST demands have already been paid,” it said.

Reports also claimed that the GST Council may provide some relief by recommending the release of refund dues as a result of inverted duty structure and subsidy.