Chemical fertilizer ‘Single super phosphate’ exported out of India is taxable @ 18% GST Facts Involved:- The Sai Fertilizers (P.) Ltd ("The Applicant") is engaged in manufacturing of chemical fertiliser, namely ‘single super phosphate'(hereinafter called SSP). SSP is used both in agriculture and industry. The Applicant intends to export SSP and pay IGST at the applicable rate as per IGST Act. Issue Involved:- The Applicant has sought an advance ruling to determine applicable GST rate of SSP when it is exported out of India. Legal Position:- The SSP being exported is not to be used as fertiliser in India, as the place of supply, according to section 11(b) of the IGST Act, will be the location outside India. The applicable rate of IGST is, therefore, 18% under SI No. 43 of Schedule III of the Rate Notification. IGST payable on SSP is 18% provided it is ‘clearly not to be used as fertiliser’. Otherwise, it is taxable @ 5% if it is ‘to be used as fertilisers. It says that the intention has been to provide the concessional rate of tax to the fertilisers which are used directly as fertilisers or which are used in the manufacturing of other complex fertilisers for agricultural use. Otherwise, SSP shall be taxable @18% . Export is a zero rated supply. The Applicant intending to export SSP may opt for a refund of the unutilized input tax credit under section 16(3)(b) of the IGST Act or may pay the applicable IGST and claim a refund under section 16(3)(b) of the IGST Act. Held:- The Authority for Advance Rulings, West Bengal observed that under GST, SSP is taxable at 18% if it is not to be used as fertilizer, otherwise at 5% if it is to be used as fertilizer. Such benefit of concessional tax rate is not available when goods are not to be consumed in India. Therefore, SSP being exported is not be used as fertilizer in India, as the place of supply will be the location outside India. The Authority for Advance Rulings, West Bengal held that applicant is required to pay IGST at 18% as SSP would be exported out of India.