Agri, textiles and crafts

GST invoice format for a fertiliser dealer (khad dukan)

A fertiliser dealer's GST invoice has to carry more than the usual Rule 46 details. Chemical fertilisers of headings 3102 to 3105 are taxed at 5% from 22 September 2025, so every line needs the grade (urea, DAP, MOP, SSP, NPK 10:26:26), the HSN heading, bag weight and batch or lot number. Print the dealer authorisation number issued under the Fertiliser Control Order, the farmer's name and Aadhaar-linked POS reference for subsidised sales, and a separate 5% line for pre-packaged organic manure.

Download this format free

Pre-filled with fertiliser dealer sample items and fields. No sign-up.

Excel (.xlsx, with formulas) Word (.docx) PDF (print and fill)

Or create these invoices in software, free

Sample fertiliser dealer invoice

Description	HSN/SAC	Qty	Rate (₹)	Taxable (₹)	GST
Urea (46% N), 45 kg bag	3102	20 BAG	266.50	5,330.00	5%
DAP 18:46:0, 50 kg bag	3105	10 BAG	1,350.00	13,500.00	5%
Muriate of potash (MOP), 50 kg bag	3104	5 BAG	1,700.00	8,500.00	5%
Single super phosphate (SSP), 50 kg bag	3103	8 BAG	520.00	4,160.00	5%
Vermicompost, pre-packaged and labelled, 25 kg	3101	6 BAG	300.00	1,800.00	5%
Taxable value				₹33,290.00
GST (CGST + SGST, or IGST if inter-state)				₹1,664.50
Invoice total				₹34,954.50

Sample prices are illustrative. Check the GST rate for your exact item or service before billing.

Extra fields a fertiliser dealer invoice needs

Fertiliser grade and nutrient ratio: Urea 46% N, DAP 18:46:0, MOP 60% K2O and NPK 10:26:26 are different products with different subsidies and prices. The grade printed on the bag must appear on the invoice so the line matches the FCO specification.
FCO dealer authorisation number: Retail and wholesale dealers sell fertiliser under a certificate of registration or authorisation issued by the state agriculture department under the Fertiliser Control Order, 1985. Inspectors check that this number appears on sale records.
Bag weight and number of bags: Fertiliser is sold in 45 kg, 50 kg and 25 kg bags, and smaller packs for kitchen gardens. Showing bag count and weight per bag lets the farmer confirm the quantity and helps reconcile stock with the company dispatch.
Batch or lot number and manufacturer: If a sample fails a quality test, the batch number links the sale to a specific manufacturing lot. It also helps the dealer return a stop-sale lot to the company with a proper credit note.
POS / iFMS sale reference: Subsidised fertilisers are sold through point-of-sale devices with farmer authentication. Quoting the POS transaction number on the bill ties the GST invoice to the subsidy record and avoids a mismatch at stock audit.
Farmer or buyer details with village: Most buyers are unregistered farmers. Name, village and mobile number are enough, but a registered buyer such as a farm company needs its GSTIN to take credit of the 5% tax.

Standard GST invoice fields

Rule 46 of the CGST Rules applies to every tax invoice, including this one:

Supplier name, address and GSTIN
Consecutive invoice number (max 16 characters, unique for the year)
Date of issue
Customer name, address and GSTIN (if registered)
Place of supply with state name
HSN/SAC code per item
Description, quantity and unit
Taxable value after discounts
GST rate and CGST + SGST or IGST amounts
Signature or digital signature

GST rules that matter for a fertiliser dealer

Chemical fertilisers are 5% after the rate rationalisation

Schedule I of Notification 9/2025-Central Tax (Rate) lists mineral or chemical fertilisers of headings 3102, 3103, 3104 and 3105 at 2.5% central tax, which is 5% in total with state tax, other than goods that are clearly not meant for use as fertilisers. The same schedule moved fertiliser inputs such as fertiliser-grade phosphoric acid to the 5% slab, which narrows the inverted duty problem that dealers and companies complained about. For a dealer, the practical result is one rate across urea, DAP, potash, SSP and complex grades, so the billing software can default the whole fertiliser category to 5% and flag any item that falls outside chapter 31.

Organic manure: nil when loose, 5% when pre-packaged and labelled

Notification 10/2025-Central Tax (Rate) exempts all goods of heading 3101 and organic manure when they are not pre-packaged and labelled, while Notification 9/2025 taxes the pre-packaged and labelled form at 5%. A dealer who sells loose farmyard manure by the trolley and also sells branded vermicompost bags must treat them as two different lines. The loose sale goes on a bill of supply or as an exempt line; the branded bag goes on the tax invoice with 5% tax. Mixing both under one rate is a common audit point.

Composition scheme suits small village dealers

A fertiliser shop that only sells goods within the state and whose turnover stays within the composition limit can opt for the composition levy and pay a flat rate on turnover. It then issues a bill of supply, cannot charge GST to the farmer and cannot claim input tax credit on the 5% paid to the company. Because most farmers cannot use input credit anyway, many small dealers find composition simpler. A dealer who also supplies registered farm companies or sells across a state border should stay in the regular scheme.

E-way bill for stock movement from the rake point

Fertiliser moves in large lots from the railway rake point or company warehouse to the dealer's godown. A consignment of taxable goods valued above Rs 50,000 needs an e-way bill, and a truck of 400 urea bags is well above that. The dealer receiving stock should check that the supplier's e-way bill shows the correct HSN and quantity, and should generate one himself when moving stock between his own godowns in different places or when sending a bulk lot to a cooperative society.

Subsidised price is the value for GST

The farmer pays the maximum retail price fixed after subsidy, and the subsidy itself is paid by the government to the manufacturer, not to the dealer. The dealer's taxable value is therefore the price actually charged to the farmer, and the MRP printed on the bag is the ceiling. Charging above MRP is an offence under fertiliser control rules, so the invoice rate should never exceed the bag MRP after tax.

Common billing mistakes

Billing branded vermicompost at nil because loose manure is exempt, when the pre-packaged and labelled bag is taxed at 5% under heading 3101.
Leaving out the FCO authorisation number and batch number, which are the first things a fertiliser inspector asks for during a shop visit.
Charging above the MRP printed on a urea or DAP bag, or adding a separate handling charge that pushes the farmer's price beyond the controlled price.
Selling a non-fertiliser item such as a chemical pesticide or a plastic sprayer tank on the same line rate, when it carries a different HSN and rate.
Not generating a credit note when unsold or stop-sale bags are returned to the company, leaving stock and GSTR-1 out of step.

Fertiliser dealer GST invoice: FAQ

What is the GST rate on urea and DAP in 2026?

Urea (heading 3102) and DAP (heading 3105) are both in Schedule I of Notification 9/2025-Central Tax (Rate), which means 5% GST in total: 2.5% CGST plus 2.5% SGST within the state, or 5% IGST across states. The same 5% applies to MOP, SSP and NPK complex fertilisers.

Can a fertiliser dealer issue one bill for fertiliser and seed?

Yes, one document can carry both, but each line must show its own HSN and rate. Seeds of sowing quality are exempt, so if the dealer is a regular taxpayer the invoice shows the seed line at nil and the fertiliser lines at 5%. The total tax must be worked out line by line.

Is the FCO number compulsory on a GST invoice?

GST law does not ask for it, but fertiliser control rules require the dealer to hold a valid authorisation and maintain sale records. Printing the authorisation number on every bill is the simplest way to show inspectors that each sale was made under a valid licence for that shop.

Does a fertiliser dealer need e-invoicing?

Only if the dealer's aggregate turnover crosses the e-invoice threshold in any financial year since 2017-18. Large wholesale distributors often do; most village retailers do not. Sales to unregistered farmers never need an IRN even when the dealer is otherwise covered.

How should a dealer bill a bag sold below MRP?

Charge the actual discounted price as the rate and calculate 5% GST on that amount. GST is levied on transaction value, so the MRP only caps the price. Keep the MRP visible on the line if you want to show the farmer the saving.

Sources: Gazette of India: Notification 9/2025-Central Tax (Rate), goods rate schedules · Gazette of India: Notification 10/2025-Central Tax (Rate), exempt goods · PIB: Simplified GST for growth of Indian commerce and trade (Sept 2025)

More formats: Agricultural commission agent (arhtiya) · Bamboo products maker · Cattle feed dealer · Coir products maker · Cold storage · Cotton ginning and pressing factory · Dal mill · Drip irrigation dealer · all businesses