On this Independence Day, from the ramparts of the Red Fort, Prime Minister Narendra Modi announced the next generation of GST reforms. His vision was realised on the 3rd of this month, when the GST Council reduced tax rates in many sectors to ease the lives of citizens. Today, we take a look at the reforms in the agriculture sector.
Under the Next Generation GST Reforms, the government has provided relief to farmers through a significant reduction in the GST in the agricultural sector. The tax rate on tractors below 1800 cc will be reduced from 12 percent to 5 percent. Tractor components, including tyres and tubes, hydraulic pumps and others will be slashed down to 5 percent slab, which previously was part of an 18 percent slab.
Several other utilities, including Specified Bio-Pesticides, Micro Nutrients, Drip Irrigation System and Sprinklers, alongside various Agricultural machines for cultivation, harvesting and threshing have witnessed a reduction from 12 percent to 5 percent. Union Finance Minister Nirmala Sitharaman said that labour-intensive industries have been given strong support, while farmers and the agriculture sector will also benefit from the decisions.
The changes will particularly benefit small and medium farmers. The reduction in GST rates on agricultural equipment will lower the cost of farming. New tax rates will come into effect from the 22nd of this month.
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