Union Minister for Agriculture and Farmers’ Welfare & Rural Development Shri Shivraj Singh Chouhan today chaired an important meeting to discuss the latest GST (Goods and Services Tax) reforms for agricultural machinery, in New Delhi. Representatives from the Tractor and Mechanization Association (TMA), Agricultural Machinery Manufacturers Association (AMMA), All India Combine Manufacturers Association (AICMA and Power Tiller Association of India (PTAI), among others, participated both in person and virtually.
Speaking to media persons after the meeting, Chouhan thanked Prime Minister Shri Narendra Modi for the GST rate cuts and shared the details of the discussions. He said that GST on agricultural machinery, earlier at 12% and 18%, has now been reduced to 5%, effective from September 22. This reduction will directly benefit farmers.
The Union Minister said that, during the meeting, all representatives of machine manufacturers' associations were told that the reduced GST rates, effective from September 22, should directly benefit farmers with full transparency. He urged the representatives to minimise the role of middlemen and ensure farmers directly receive the benefits of GST reforms.
Chouhan said that the GST rate cut is a major step and will have a far-reaching impact. For example, a 35 HP tractor will now be ₹41,000 cheaper, a 45 HP tractor ₹45,000 cheaper, a 50 HP tractor ₹53,000 cheaper, and a 75 HP tractor ₹63,000 cheaper. Smaller tractors used in horticulture and weeding will also see price reductions. Overall, both small and large tractors have become cheaper after the GST rate cut. A 4-row paddy transplanter will cost ₹15,400 less, while a multi-crop thresher with a capacity of 4 tonnes per hour will be cheaper by ₹14,000.
The Union Minister added that information on GST reforms will be widely disseminated through various communication channels to ensure farmers are fully aware of the benefits. He further said that custom hiring centres would also get machines at lower prices, and therefore, rental rates should be reduced accordingly. Efforts will be made to ensure this as well. He instructed that during the second phase of the Viksit Krishi Sankalp Abhiyan, starting October 3 for Rabi crops, information about the benefits of GST reforms should also be communicated to farmers.
The Agriculture Minister assured that suitable measures will be taken to strengthen farm mechanisation. Suggestions from manufacturer associations will be considered while framing plans. Representatives of agricultural machinery manufacturers’ associations welcomed the government’s decision on GST reforms and expressed their gratitude. Agriculture Secretary Dr. Devesh Chaturvedi and other senior officials of the Ministry were also present at the meeting.