The Central Government has amended the GST rate notification for specified fertilisers and rubber tyres through Notification No. 02/2026-Central Tax (Rate), dated 27 October 2026. Effective from 1 November 2026, the changes expressly include eligible seaweed-extract-based bio-stimulants under the fertiliser entry and reduce the GST rate on retreaded tractor tyres to 5%.

1. Seaweed-Extract-Based Bio-Stimulants: 5% GST

The amendment revises Serial No. 237 of Schedule I to Notification No. 09/2025-Central Tax (Rate), dated 17 September 2025.

The entry covers pre-packaged and labelled animal, vegetable or organic fertilisers. The revised wording expressly includes seaweed-extract-based bio-stimulants registered under Schedule VI to the Fertiliser (Inorganic, Organic or Mixed) (Control) Order, 1985.

Key points:

• GST rate: 5% in total for an intra-State supply, comprising 2.5% CGST and 2.5% SGST.

• Classification: Eligible seaweed-extract-based bio-stimulants are classifiable under heading 3101 as fertilisers.

• Registration condition: The product must be registered under the specified Schedule VI.

• Scope: The amendment does not automatically cover every seaweed-based product; the prescribed registration and classification conditions must be satisfied.

Manufacturers, importers, distributors and agricultural input dealers should verify product registration and HSN classification before applying the concessional rate.

2. Retreaded Tractor Tyres: GST Reduced to 5%

The notification introduces a separate entry, Serial No. 272A, under Schedule I for retreaded tractor tyres classified under heading 4012.

Previously, retreaded tractor tyres were covered by the broader entry for retreaded or used pneumatic tyres of rubber, attracting 18% GST. The amendment aligns their tax treatment with the rate applicable to new tractor tyres.

The revised treatment is as follows:

• Retreaded tractor tyres: 5% GST, comprising 2.5% CGST and 2.5% SGST for intra-State supplies.

• Other retreaded or used pneumatic tyres of rubber: 18% GST.

• Solid or cushion tyres, tyre treads and tyre flaps of rubber: 18% GST.

The revised entry expressly excludes retreaded tractor tyres from the broader 18% tyre category.

This change is particularly relevant to tractor tyre retreading businesses, agricultural equipment dealers, tyre distributors and farmers purchasing retreaded tyres.

3. Effective Date and Compliance Requirements

The amendments take effect from 1 November 2026, under Notification No. 02/2026-Central Tax (Rate), dated 27 October 2026. Corresponding amendments have also been issued for integrated tax and Union Territory tax.

Businesses should take the following steps:

1. Update HSN and GST rate masters in billing and accounting software.

2. Verify Schedule VI registration for seaweed-based bio-stimulants.

3. Separate retreaded tractor tyres from other retreaded and used rubber tyres in inventory records.

4. Apply the revised rates to supplies according to the applicable time-of-supply provisions.

5. Review purchase and sales invoices to ensure correct tax calculation and reporting.

Conclusion

The amendments provide greater clarity on the GST classification of eligible seaweed-based bio-stimulants and reduce the tax burden on retreaded tractor tyres. Businesses should review product eligibility, classification and invoicing systems before the new rates take effect.

For expert guidance on this topic, contact your tax professional today.