GST Cut to Reduce Prices of Farm Equipment by Up to Rs 1.87 Lakh, Check Savings Across Categories

The GST Council’s decision to cut tax rates on agricultural equipment will help farmers save up to Rs 1.87 lakh. The GST on these machines has been reduced from 12 percent to 5 percent, with the new rates taking effect from September 22.

Union Agriculture and Farmers Welfare Minister and Rural Development Minister Shivraj Singh Chouhan, at a press conference in Bhopal on Saturday, released an estimate comparing prices and savings for various agricultural machines under the old and new GST rates. The equipment covered includes tractors, power tillers, paddy transplanters, threshers, power weeders, trailers, seed-fertilizer drills, harvester combines, super seeders, happy seeders, rotavators, and others.

Savings on combines and tractors
Currently, a harvester combine with a 12-foot cutter bar costs Rs 30 lakh including 12 percent GST. After the rate is reduced to 5 percent, the price will fall to Rs 28.12 lakh, saving farmers Rs 1.87 lakh. Similarly, the price of a 35 HP tractor will drop from Rs 6.50 lakh to Rs 6.09 lakh, providing savings of Rs 41,000. A 45 HP tractor will become cheaper by Rs 45,000, a 50 HP tractor by Rs 53,000, and a 75 HP tractor by Rs 63,000.

Tiller, transplanter, thresher, power weeder
According to the Ministry’s estimates, a 13 HP power tiller will now cost Rs 1,78,125, which is Rs 11,875 less than before. The price of a four-row paddy transplanter will fall from Rs 2.46 lakh to Rs 2.31 lakh, a thresher from Rs 2.24 lakh to Rs 2.11 lakh, and a 7.5 HP power weeder from Rs 87,920 to Rs 82,425. These changes will result in savings ranging from Rs 5,495 to Rs 15,400.

Trailer, seed drill, reaper, seeder, rotavator
A 5-tonne capacity trailer will now cost Rs 1.57 lakh instead of Rs 1.68 lakh. The seed-fertilizer drill will drop to Rs 65,625 from Rs 70,000. An 8-foot straw reaper will now cost Rs 2.53 lakh instead of Rs 2.70 lakh, while a Happy Seeder will fall to Rs 1,59,375 from Rs 1.70 lakh. A 6-foot rotavator will drop to Rs 1.17 lakh from Rs 1.25 lakh, an 8-foot mulcher to Rs 1.73 lakh from Rs 1.85 lakh, a pneumatic planter to Rs 4.92 lakh from Rs 5.25 lakh, and a tractor-mounted sprayer to Rs 1.40 lakh from Rs 1.50 lakh.