Vanshika verma | Sep 10, 2025 |
Historic GST Reduction Brings Relief to Agriculture and Livelihoods
The GST Council, in its recent 56th meeting held on September 3, 2025 made the suggestions related to GST tax rate changes. These new changes set a major transformation in the agriculture and dairy sector.
With the reduction in GST rates, farmers, dairy workers and agricultural and livestock owners from all countries are showing joy and gratitude to Prime Minister Shri Narendra Modi and Union Finance Minister Nirmala Sitharaman. Union Agriculture Minister Shri Shivraj Singh Chouhan termed the new rates a revolutionary decision, expressing hope for historic changes.
The impact of GST reforms will be widely seen among small and medium farmers. Reducing GST rates on agricultural machinery and solar-powered equipment will help in slashing farming costs and will increase farmers’ profits. GST has also been reduced on biopesticides and micronutrients, which will benefit farmers and encourage a shift from chemical to bio-fertilisers. In the dairy sector, milk and cheese will now attract zero GST, benefitting not only common citizens but also farmers, livestock owners and dairy producers.
The GST reforms will also promote integrated farming. Clear benefits will be visible in animal husbandry, beekeeping, agroforestry, fisheries and poultry farming. Reduced GST on Tendu leaves will build the livelihood of tribal communities, while lower GST on commercial goods vehicles will make the transportation of farm produce cheaper. The following are some of the things which will get cheaper:
Tractor prices, Tractor parts, Agricultural equipment, Solar-powered irrigation devices, Fertilisers, Pesticides, Fruits and vegetables, Nuts, Boost to food processing, No GST on milk and cheese, Promotion of indigenous products, GST reduced on ‘prepared/preserved fish’, Natural honey costs less. Reduced GST on tendu leaves.
Difference between Old and New GST for multiple popular agricultural machinery and equipment:-
| Sl.No. | Name of Agricultural Machinery & Equipment | Basic cost of Agricultural Machinery & Equipment (Rs.) | Present GST rate @ 12 % (Rs.) | Total Cost with 12% GST (Rs.) | Upcoming Revised GST rate @ 5% (Rs.) | Total cost with revised GST @ 5% (Rs.) | Saving (Rs.) |
| 1. | Tractor 35 HP | 5,80,000 | 69,600 | 6,50,000 | 29,000 | 6,09,000 | 41,000 |
| 2. | Tractor 45 HP | 6,43,000 | 77,160 | 7,20,000 | 32,150 | 6,75,000 | 45,000 |
| 3. | Tractor 50 HP | 7,59.000 | 91,080 | 8,50,000 | 37,950 | 7,97,000 | 53,000 |
| 4. | Tractor 75 HP | 8,93,000 | 1,07,160 | 10,00,000 | 44,650 | 9,37,000 | 63,000 |
| 5. | Power Tiller 13 HP | 1,69,643 | 20,357 | 1,90,000 | 8,482 | 1,78,125 | 11,875 |
| 6. | Paddy Transplanter- 4 row walk behind | 2,20,000 | 26,400 | 2,46,400 | 11,000 | 2,31,000 | 15,400 |
| 7. | Multicrop Thresher – 4 tone/ hr capacity | 2,00,000 | 24,000 | 2,24,000 | 10,000 | 2,10,000 | 14,000 |
| 8. | Power weeder – 7.5 hp | 78,500 | 9,420 | 87,920 | 3,925 | 82,425 | 5,495 |
| 9. | Trailer 5 tone capacity | 1,50,000 | 18,000 | 1,68,000 | 7,500 | 1,57,500 | 10,500 |
| 10. | Seed Cum Fertilizer Drill – 11 tyne | 46,000 | 5,520 | 51,520 | 2,300 | 48,300 | 3,220 |
| 11. | Seed cum Fertiliser Drill – 13 Tine | 62,500 | 7,500.00 | 70,000 | 3,125.00 | 65,625 | 4,375 |
| 12. | Harvester Combine | 26,78,571 | 3,21,428 | 30,00,000 | 1,33,928 | 28,12,500 | 1,87,500 |
| 14 feet Cutter Bar | |||||||
| 13. | Straw Reaper | 3,12,500 | 37,500.00 | 3,50,000 | 15,625 | 3,28,125 | 21,875 |
| 5 feet | |||||||
| 14. | Super Seeder | 2,41,071 | 28,928.57 | 2,70,000 | 12,053 | 2,53,125 | 16,875 |
| 8 Feet | |||||||
| 15. | Happy Seeder | 1,51,786 | 18,214 | 1,70,000 | 7,589.29 | 1,59,375 | 10,625 |
| 10 Tine | |||||||
| 16. | Rotavator | 1,11,607 | 13,392 | 1,25,000 | 5,580 | 1,17,187 | 7,812 |
| 6 Feet | |||||||
| 17. | Baler Square | 13,39,286 | 1,60,714 | 15,00,000 | 66,964 | 14,06,250 | 93,750 |
| 6 feet | |||||||
| 18. | Mulcher | 1,65,179 | 19,821 | 1,85,000 | 8,258 | 1,73,437 | 11,562 |
| 8 Feet | |||||||
| 19. | Pneumatic Planter | 4,68,750 | 56,250 | 5,25,000 | 23,437 | 4,92,187 | 32,812 |
| 4 Row | |||||||
| 20. | Sprayer Tractor Mounted | 1,33,929 | 16,071 | 1,50,000 | 6,696 | 1,40,625 | 9,375 |
| 400 Liter capacity |
Ammonia, sulphuric acid, nitric acid: Gst reduced from 18% to 5%
12 bio-pesticides and several micronutrients: GST cut from 12% to 5%
Prepared/preserved vegetables, fruits, and nuts: GST reduced from 12% to 5%
GST on butter, ghee, etc. reduced from 12% to 5%.
GST on prepared or preserved fish reduced from 12% to 5%.
GST on artificial honey, whether blended with natural or not, was cut from 18% to 5%.
GST on solar-powered devices was reduced from 12% to 5%.
GST reduced from 18% to 5%.
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