GST Bachat Utsav, announced by Prime Minister Narendra Modi, which commenced on the 22nd of this month, is benefiting all sections of society. The next-generation GST reforms represent a significant step towards simplifying India’s indirect tax system. The reforms are bringing substantial relief to citizens by reducing the tax rate on various goods and services. Today, we are presenting a report on the GST cut in the agriculture sector.
Under the next generation GST reforms, the government has implemented significant tax reductions in the agriculture sector to benefit farmers. Under GST 2.0, Tax on tractors below 1800 CC has been reduced from 12 percent to 5 percent.
Lower GST on tractors will bring down the purchase price of tractors, making them more affordable for small and medium farmers who form the majority of tractor buyers in India. Similarly, the government has cut GST on agricultural machinery. Under the new tax structure, GST on harvesting or threshing machinery and composting machines has been reduced from 12 percent to 5 percent. These reduced tax rates will encourage mechanisation in agriculture, helping farmers save time, reduce manual labour costs, and improve crop productivity. Talking to the media, Shikhar Pagaria, a tractor showroom owner from Madhya Pradesh, said that this tax reduction is benefitting farmers directly and helping them to save up to 90 thousand rupees.
The GST rationalisation in the agriculture sector will reduce the cost of farm equipment and make it more affordable for small and marginal farmers.
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