India Slashes GST on 12 Key Bio-Pesticides to 5%
04 September 2025, New Delhi: In a major push towards sustainable and eco-friendly farming, the Government of India has announced a steep reduction in Goods and Services Tax (GST) on bio-pesticides. The Central Board of Indirect Taxes & Customs (CBIC) has revised the GST rate on a range of biological crop protection products from 12% to just 5%, a move aimed at encouraging wider adoption of environmentally safe alternatives to chemical pesticides.
According to the revised list, the 12 bio-pesticides covered under this decision include microbial formulations such as Bacillus thuringiensis var. israelensis, Bacillus thuringiensis var. kurstaki, Bacillus thuringiensis var. galleriae, Bacillus sphaericus, Trichoderma viride, Trichoderma harzianum, and Pseudomonas fluorescens. It also includes entomopathogenic fungi like Beauveria bassiana, viral pesticides such as NPV of Helicoverpa armigera and NPV of Spodoptera litura, as well as plant-derived products including neem-based pesticides and Cymbopogon extracts.
These bio-pesticides are widely recognised for their role in integrated pest management (IPM) and are considered critical for reducing dependency on synthetic chemical pesticides. They help manage pest populations effectively while safeguarding soil health, biodiversity, and long-term sustainability of agriculture.
The government’s decision to lower GST is expected to make these biological solutions more affordable and accessible to farmers, particularly small and marginal growers who are most affected by rising input costs.
Prime Minister Narendra Modi, while commenting on the wider GST reforms, noted that the changes are part of the “next generation of GST initiatives” and will directly benefit farmers, entrepreneurs, and the broader economy. Experts believe the bio-pesticide sector could see a significant boost in adoption rates, aligning with India’s broader policy vision of promoting climate-smart agriculture and reducing the chemical footprint in farming.
Industry stakeholders have welcomed the move, noting that lower tax rates will not only reduce prices but also encourage innovation and investment in the biologicals sector. With the global agriculture industry moving towards greener solutions, India’s policy reform on GST is seen as a step in strengthening its position as a key market for sustainable agri-inputs.
Also Read: India Slashes GST on Tractors and Agri-Inputs to Boost Farm Economy
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