Union Agriculture and Farmers’ Welfare Minister Shivraj Singh Chouhan in his review meeting on GST rates with representatives of the agricultural equipment industry stressed that rate cuts under GST 2.0 on tractors and farm equipment must directly reach farmers. For the unversed, the Indian Govt on 3rd September announced GST 2.0 to lessen burden on the common man. Among the beneficiaries list, the GST council reduced the goods and services tax rates on several farm goods to 5 per cent from 12 per cent, which was widely acclaimed. The new GST reforms slashed rates on agricultural products, including tractors, agricultural, horticultural or forestry machinery for soil preparation or cultivation, lawn or sports-ground rollers, nozzles for drip irrigation equipment or nozzles for sprinklers.
GST Rates Must be Widely Passes to Farmers
Mr Chouhan in his review meeting on GST rates highlighted that the GST reduction from 12% to 18% to 5% will make tractors and machinery significantly cheaper. And the benefits must be widely passed to farmers. The review meeting was attended by the representatives of the Tractor and Mechanization Association, All India Combine Manufacturers Association, Agricultural Machinery Manufacturers Association, and Power Tiller Association of India, both virtually and in person. In a significant move to support the agricultural sector, the GST council has reduced the Goods and Services Tax (GST) on tractors and related farm machinery from 12% to 5%. It will make modern farming equipment more affordable and accessible to farmers across the country.
Notably, GST 2.0 was introduced with a focus on common man, and is expected to lower the initial investment required for purchasing farm machinery, thereby promoting mechanisation in agriculture. Additionally, the lower GST on tractor parts and tyres will reduce maintenance costs, further easing the financial burden on farmers.