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Key Points

The government has announced a significant GST cut on agricultural machinery to boost farmer incomes. Effective September 22, GST rates drop from 12-18% to just 5% across all farm equipment. This means farmers can save up to ₹63,000 on tractor purchases and thousands more on other machinery. The government plans extensive awareness campaigns to ensure every farmer benefits from these cost reductions.

Key Points: Modi Government Cuts GST on Tractors and Farm Machinery

  • GST on farm machinery slashed from 12-18% to 5% effective September 22
  • 75 HP tractor prices to drop by ₹63,000 for major farmer savings
  • Custom hiring centres must reduce rental rates to ensure affordability
  • Government to launch awareness campaign during Viksit Krishi Sankalp Abhiyan
2 min read

Agricultural machinery and tractors to become cheaper in major relief for farmers: Minister

Union Minister Shivraj Singh Chouhan announces major GST reduction on agricultural machinery from 18% to 5%, saving farmers up to ₹63,000 on tractors.

"The reduced GST rates should directly benefit farmers with full transparency. - Shivraj Singh Chouhan"

New Delhi, Sep 19

The government has pledged to ensure an increase in farmers’ incomes, which requires both raising productivity and reducing costs, and mechanisation is vital to achieving both, Union Agriculture Minister Shivraj Singh Chouhan said on Friday.

Addressing a meeting to discuss the latest GST reforms for agricultural machinery here in the presence of industry representatives, Chouhan thanked Prime Minister Narendra Modi for the GST rate cuts.

He said that GST on agricultural machinery, earlier at 12 per cent and 18 per cent, has now been reduced to 5 per cent, effective from September 22 which will directly benefit farmers.

The representatives of machine manufacturers associations were told that the reduced GST rates should directly benefit farmers with full transparency.

Chouhan said that the reduction in GST rates is a big step, which will have a widespread impact. Later, pointing out the significant price reductions.

A 35 HP tractor will now be cheaper by Rs 41,000, a 45 HP tractor will now be cheaper by Rs 45,000, a 50 HP tractor will now be cheaper by Rs 53,000 and a 75 HP tractor will now be cheaper by Rs 63,000.

Even small tractors used in horticulture and weeding will see cost reductions. A 4-row paddy transplanter will now be cheaper by Rs 15,400, while a 4-tonne-per-hour multi-crop thresher will cost Rs 14,000 less. A 13-HP power tiller will also cost Rs 11,875 less.

Chouhan said that the government will widely disseminate information on these benefits through multiple communication channels to raise awareness among farmers. The minister also emphasised that custom hiring centres, which will now get machines at lower prices, must reduce rental rates to ensure affordability for farmers.

Information about the GST rate reduction will be communicated to farmers during the upcoming second phase of the ‘Viksit Krishi Sankalp Abhiyan’ for Rabi crops, beginning October 3, so that they can make the best use of it for advanced farming.

- IANS

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Reader Comments

P
Priya S
Great initiative! But I hope the manufacturers actually pass on the full benefit to farmers. Sometimes these price reductions don't reach the end consumer. The government should monitor this closely.
M
Michael C
As someone working in agricultural development, this is a significant step forward. Mechanization is crucial for improving productivity in Indian agriculture. The savings on power tillers and transplanters will help small farmers the most.
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Suresh O
Bahut accha decision hai! My village in Punjab will benefit greatly from this. Many farmers were struggling with old equipment. Now with ₹45,000 saving on 45HP tractors, more people can afford modern machinery. Jai Kisan! 🚜
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Neha E
Hope the custom hiring centers actually reduce rental rates as the minister mentioned. Many small farmers depend on renting equipment rather than buying. This could make advanced farming accessible to everyone.
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Aditya G
The timing before Rabi season is perfect! Farmers can plan their purchases better. The multi-crop thresher becoming cheaper by ₹14,000 is particularly helpful for those growing multiple crops. Good move by the government.

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