The GST Council is likely to consider several measures to lower the tax burden on the agriculture sector at its upcoming meeting on October 8, including exempting seed storage and coffee-curing services from GST and placing psyllium (isabgol) seeds in the nil-rate category, government sources said.
“The measures are aimed at reducing farm input costs and providing greater clarity on the tax treatment of agriculture-related goods and services,” said an official.
The council is likely to exempt storage and warehousing of seeds meant for sowing from GST. Earlier, seeds meant specifically for sowing did not get GST exemption on storage or warehousing because such seeds are usually processed before reaching farmers.
“Activities such as grading, treatment and packing would no longer prevent the seeds from qualifying for the warehousing exemption, potentially reducing the storage cost that gets passed on to farmers,” the official said.
The council may also create a separate entry for psyllium seeds, known in trade as isabgol, at the nil rate, whether the seeds are fresh, chilled, frozen or dried, so that a crop grown largely by smallholders is not taxed differently.
Official sources said that the council is likely to approve a tax rate of 5 percent for all seaweed-based bio-stimulants registered under the Fertiliser Control Order 1985. At present, they attract 18 percent GST. This would reduce the tax burden on products used to improve crop growth, soil health and yields, the sources note.
Bio-stimulants are agricultural products that help plants use nutrients better, grow more effectively and tolerate stress, rather than directly supplying nutrients like conventional fertilisers. They can include seaweed extracts, humic and fulvic acids, amino acids, protein hydrolysates and certain microbial products.
These measures would bring key farm inputs and services including seed storage, bio-stimulants, coffee curing and tractor tyres under the GST rates intended to support agriculture and reduce tax costs, industry sources said.
This will be the 57th GST Council meeting. The 56th GST Council meeting was held on September 3-4, 2025, during which the Centre and states decided on a major restructuring of Goods and Services Tax (GST) rates and slabs.
