September 8, 2025
Union Agriculture and Rural Development Minister Shivraj Singh Chouhan stated that the recent GST rate cuts on agriculture equipment and inputs is a boon for farmers and will boost rural sector. The next generation GST reforms will lower farming costs and improve the profitability of farmers said Shivraj Singh Chouhan while addressing the media in Bhopal. He further highlighted that GST on bio-pesticides and micro-nutrients has been reduced which is set to benefit cultivators and will encourage shift towards bio-fertilizers.
In the new GST reforms, the government has announced reduction of GST to 5% from the previous 18% on agricultural equipment is a boon for farmers. The government has reduced Good and Services Tax to 5% on tractor, harvester, and rotavator, of different types. Notably, the newly approved GST 2.0 paves the way for two slab-structure of 5 and 18 per cent and replacing the slab structure of 12% and 28%. Further the next gen GST reforms which provides exemptions in the dairy sector, including on milk and cheese, will help the common man as well as cattle breeders and milk producers said the Union Agriculture and Rural Development Minister.
Shivraj Singh Chouhan stressed on the government efforts on enhancing productivity, aid water conservation by reducing GST from 12 to 5 per cent on energy-based and research-driven equipment. Stakeholders from the industry have also welcomed the next-generation Goods and Services Tax (GST) reforms as the Vice President of the Indian Rice Exporters Federation, Dev Garg in his latest interview with the ANI, said that “With huge cuts in GST rates for most consumer items, rice exporters expect a huge uptick in demand for premium varieties of rice.” Dev Garg hailed the new GST reforms by calling it “not just a tax reform, but an economic reform”. The vice president of IREF, Dev Garg also said that after the new GST reforms basmati rice and other premium non-basmati rice varieties are poised to increase in demand.