Starred Question 164: Purchase of subsidized fertilizers using Aadhaar number
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
(a) Whether it is fact that Government has allowed authorized employees of any registered companies and partnership firms engaged in plantation work to purchase subsidized fertilizers by using his or her Aadhaar number;
(b) whether it is also a fact that according to Plantation sector, this might not benefit the plantations as they cannot take GST input credit on fertilizer if an employee purchases it in his or her name; and
(c) if so, the modalities being worked out by Government in this regard?
MINISTER OF CHEMICALS & FERTILIZERS AND PARLIAMENTARY AFFAIRS
(SHRI ANANTH KUMAR)
(a) to (c): A statement is laid on the table of the House.
STATEMENT REFERRED TO IN PART (A) TO (C) OF RAJYA SABHA STARRED QUESTION NO. 164* TO BE ANSWERED ON 09.03.2018 REGARDING “PURCHASE OF SUBSIDIZED FERTILIZERS USING AADHAAR NO.”
(a): Yes, Sir. Under the Fertilizer DBT system, 100% subsidy on various fertilizer grades shall be released to the fertilizer companies on the basis of actual sales made by the retailers to the beneficiaries. Sale of all subsidized fertilizers to farmers/buyers will be made through Point of Sale (PoS) devices installed at each retailer shop and the beneficiaries will be identified through Aadhaar Card or Kisan Credit Card (KCC) or Voter Identity Card.
The government has made a provision under which registered companies and partnership firms engaged in plantation work may authorize any of their employees through an authorization letter for purchase of any specified quantity and type of subsidized fertilizers. The authorized employee can thereafter, buy the fertilizers on behalf of the company using his/her Aadhaar number. The authorized employee will produce the authorization letter at the retailer outlet at the time of purchase of subsidized fertilizers.
(b): On fulfillment of conditions laid down in the CGST Act, 2017 read with the rules made there under, GST input credit on fertilizer may be availed by any registered company and partnership firm by getting the GSTIN (GST Identification Number) of the said registered company and partnership firm mentioned on the taxable invoice issued by the supplier at the time of purchase by the authorized employees on behalf of registered company and partnership firm.