Diwali Gift for Farmers: Tractors to Get Cheaper, Major Relief, 5% GST on Agriculture Equipment

The Central Government has given a festive gift to millions of farmers and consumers across the country by announcing major reforms in the GST structure. In a meeting of the GST Council chaired by Finance Minister Nirmala Sitharaman, it was decided that the tax rate on farming equipment and machinery will now be reduced to just 5%.

Lower Costs for Farmers:

This decision is set to reduce farming expenses and ease the financial burden on farmers. Tractors, horticulture and forestry machines, Harvesters, threshers, grass-cutting and compost-making machines, all of these will now attract only 5% GST. Additionally, pesticides used in fields will also see a reduction in tax from 12% to 5%.

Relief for Consumers:

The Council also decided to cut taxes on everyday household products, making them more affordable:
Soap, toothpaste, hair oil, bicycles, and tableware will now attract only 5% GST.
Butter, ghee, cheese, and dairy spreads reduced from 12% to 5%.
Packaged snacks like namkeen, bhujia, and mixtures will now fall under the 5% GST slab.
Paneer, chhena, parathas, and all types of Indian breads have been exempted from GST entirely.
UHT milk will also be completely tax-free.

Special Relief on Agricultural Equipment:

Tractors reduced from 12% to 5% GST
Tractor tyres and spare parts cut from 18% to 5%
Bio-pesticides and micro-nutrients taxed at 5%
Drip irrigation and sprinkler systems reduced from 12% to 5%
Agricultural, horticultural, and forestry machinery (ploughing, sowing, harvesting, etc.) now at 5%

Other Key Reductions:

Natural menthol and fertilizers will now attract only 5% GST
Handicrafts will be taxed at 5%
Man-made fibres reduced from 18% to 5%, and man-made yarn cut from 12% to 5%

Lower GST, Building Prosperity in Agriculture
Historic Diwali Gift for the Nation

Next-GEN GST REFORM: