Fertiliser Stocks Surge by Up to 15% as GST Relief Reports Surface; GSFC Continues Gaining for 5th Consecutive Day
On Wednesday, the shares of prominent fertiliser companies experienced an upsurge of up to 15% following reports indicating that the GST Council might offer tax relief to the sector during its forthcoming meeting.
Notably, Gujarat State Fertilizers and Chemicals Ltd (GSFC) witnessed a substantial rise of 7% as it reached a high of ₹250.25 per share on the NSE, maintaining its fifth consecutive day of gains. The stock concluded the day with a 2.59% increase, closing at ₹240 on the NSE.
Khaitan Chemicals and Fertilizers soared by up to 15%, peaking at ₹80 per share before settling at ₹77.2 per share, reflecting a remarkable surge of 13.15%.
Chambal Fertilizers and Chemicals achieved a 52-week high, reaching ₹475.85 on the NSE, and ultimately closing 6.51% higher at ₹466.90 per share.
Fertilizers and Chemicals Travancore Ltd also attained a year-high of ₹942.50 on the NSE. However, the stock retraced its early gains to conclude with a 4.41% increase, reaching ₹905 per share.
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National Fertilizer Ltd experienced a striking 9% surge, attaining a year high of ₹131.32 on the NSE. Subsequently, the shares concluded with a 4.53% rise, reaching ₹125.90.
Rashtriya Chemicals And Fertilizers observed a surge of over 11%, reaching a 52-week high of ₹194 per share. RCF’s shares closed at ₹185.50 apiece on the NSE, reflecting a notable 7.00% increase.
Additionally, Deepak Fertilisers rose by 4%, Madras Fertilisers observed an increase of over 5%, and Paradeep Phosphates surged by over 3%.
Fertiliser Stocks Rally Amid Anticipated GST Relief
As per a CNBC report, the upcoming meeting of the GST Council scheduled on June 22 may bring relief to fertiliser companies by addressing retrospective demands.
The report indicates that sectors which initially paid GST at a lower rate than subsequently imposed by authorities may receive reprieve from retroactive action.
Quoting sources, the report stated that the GST Council is contemplating an amendment in GST laws.
“The proposed amendment in GST law is expected to prohibit the imposition of higher GST rates in cases where the lower rate was paid in accordance with common trade practices,” as per the report.
Additionally, reports suggested that the GST Council may recommend the disallowance of GST refunds or cess in instances where higher GST demands have already been settled. The council may also propose the release of refund dues resulting from an inverted duty structure and subsidy.