Historic GST Reduction Brings Relief to Agriculture and Livelihoods:

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.

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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

• Fertilisers

Ammonia, sulphuric acid, nitric acid: Gst reduced from 18% to 5%

• Bio-Pesticides and Micronutrients

12 bio-pesticides and several micronutrients: GST cut from 12% to 5%

• Fruits, Vegetables and Food Processing

Prepared/preserved vegetables, fruits, and nuts: GST reduced from 12% to 5%

• Dairy Sector

GST on butter, ghee, etc. reduced from 12% to 5%.

• Aquaculture

GST on prepared or preserved fish reduced from 12% to 5%.

• Honey

GST on artificial honey, whether blended with natural or not, was cut from 18% to 5%.

• Solar-Powered Equipment

GST on solar-powered devices was reduced from 12% to 5%.

• Tendu Leaves

GST reduced from 18% to 5%.