Agriculture Minister Urges GST Cut Benefits to Farmers
Union Agriculture Minister Shivraj Singh Chouhan has urged manufacturers of agricultural equipment and tractors to ensure farmers receive the benefits of upcoming GST rate reductions in a prompt fashion, as these changes are scheduled to begin on September 22, 2025.
During a meeting focused on GST reforms affecting agriculture, which included participation from major industry representatives, Chouhan was present as the chairperson.
The minister highlighted that farmers stand to benefit from savings of up to Rs 63,000 when purchasing tractors and Rs 11,875 for power tillers. Additionally, seed drill purchases will result in savings reaching Rs 4,375, and harvester buyers can expect to save Rs 1,87,500.
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“The GST rates on agricultural machinery, which were earlier 18 percent and 12 percent, have now been reduced to five percent, and these significantly reduced rates will come into effect from 22nd September. This reduction will directly benefit the farmers,” Chauhan said.
The minister emphasized that although these price reductions will provide significant advantages to farmers, it remains crucial for manufacturers and their dealer networks to ensure these savings reach farmers directly. He mentioned that the government plans to launch an information campaign to keep farmers updated about price reductions as they happen.
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Industry representatives from several organizations participated in the meeting, including the Tractor and Mechanisation Association (TMA), Agricultural Machinery Manufacturers Association (AMMA), All India Combine Harvester Manufacturers Association (AICMA), Power Tiller Association of India (PTAI), and additional relevant groups.
“We are also planning one more step, Custom Hiring Centers (CHCs) will also get these machines at reduced prices, so the rental rates should also come down, and we will work towards that as well".
"The Prime Minister’s focus has been on technology and promoting mechanization in agriculture, and it is likely because of this focus that in the last decade, agricultural production has increased significantly. So can it be said that this has been the main focus, especially with GST reductions, to accelerate mechanisation,” Chouhan said.
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The federal government's GST rate reduction will decrease costs for tractors and agricultural machinery by 7 to 13 percent for farmers. This creates a double advantage for farmers through both subsidy programs and reduced taxes, while also providing domestic agricultural equipment manufacturers with enhanced competitiveness aligned with the Atmanirbhar Bharat initiative.