Last Updated on September 19, 2025 4:21 pm by BIZNAMA NEWS
AMN / NEW DELHI
Union Agriculture and Farmers’ Welfare Minister Shivraj Singh Chouhan today stressed that the GST rate cuts on tractors and farm equipment must directly reach farmers. Chairing a meeting with agricultural machinery and equipment representatives in New Delhi, Mr Chouhan highlighted that the GST reduction from 12% to 18% to 5% will make tractors and machinery significantly cheaper.
The meeting was attended by 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.
This tax reduction 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
Meanwhile, the rates of tractors have been slashed from 12% to 5%. Tractors will see price cuts ranging from 41,000 rupees to 63,000 rupees depending on their horsepower. Power tillers will become cheaper by nearly 11,000 rupees, while Harvesters will witness one of the biggest drops, a saving of 1,87,500 rupees while straw reapers will be cheaper by 21,875 rupees.
Today, Union Agriculture and Farmers’ Welfare Minister Shivraj Singh Chouhan, in the meeting, said this reduction is substantial and will boost farmers’ incomes. He directed that the benefit must not get absorbed midway but should directly reach farmers, starting from September 22.
