Union Agriculture Minister Shri Shivraj Singh Chouhan chairs key meeting on GST reforms for agricultural machinery

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, Shri 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 Minister said. He stressed that the Central Government has pledged to ensure an increase in farmers’ incomes, which requires both raising productivity and reducing costs, and mechanisation is vital to achieving both.

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. Shri Chouhan said that the reduction in GST rates is a big step, which will have a widespread impact. Later, pointing out the significant price reductions, he said:

A 35 HP tractor will now be cheaper by ₹41,000
A 45 HP tractor will now be cheaper by ₹45,000
A 50 HP tractor will now be cheaper by ₹53,000
A 75 HP tractor will now be cheaper by ₹63,000

Even small tractors used in horticulture and weeding will see cost reductions. A 4-row paddy transplanter will now be cheaper by ₹15,400, while a 4-tonne-per-hour multi-crop thresher will cost ₹14,000 less. A 13-HP power tiller will also cost ₹11,875 less.

Further price reductions include:

Power weeder (7.5 HP): cheaper by ₹5,495
Trailer (5-tonne capacity): cheaper by ₹10,500
Seed-cum-fertiliser drill (11 tyne): cheaper by ₹3,220
Seed-cum-fertiliser drill (13 tyne): cheaper by ₹4,375
Harvester combine cutter bar (14 ft): cheaper by ₹1,87,500
Straw reaper (5 ft): cheaper by ₹21,875
Super seeder (8 ft): cheaper by ₹16,875
Happy seeder (10 tyne): cheaper by ₹10,625
Rotavator (6 ft): cheaper by ₹7,812
Baler square (6 ft): cheaper by ₹93,750
Mulcher (8 ft): cheaper by ₹11,562
Pneumatic planter (4-row): cheaper by ₹32,812
Tractor-mounted sprayer (400-litre capacity): cheaper by ₹9,375

Shri Chouhan announced that the government will widely disseminate information on these benefits through multiple communication channels to raise awareness among farmers.

The Minister also emphasised that custom hiring centres, which will now get machines at lower prices, must reduce rental rates to ensure affordability for farmers.