Mahindra leadership cheer GST reforms as GST on BEVs stay at 5%, tractors slashed from 12% to 5%

The announcement by Finance Minister Nirmala Sitharaman to keep GST rates to three slabs: 5%, 12%, and 40%, has been welcomed jubilantly by the leadership of Mahindra & Mahindra , who stand to benefit from rationalisation, along with GST on BEVs maintained at 5%, and GST on tractors slashed from 12% to 5%.

“The next-generation GST reforms announced today mark a defining moment in India’s journey towards building a simpler, fairer, and more inclusive tax system. By moving to a streamlined two-rate structure and focusing on essentials that touch the lives of every citizen—such as food, health, and insurance, as well as agriculture and small businesses—the Government has reaffirmed its commitment to Ease of Living and Ease of Doing Business,” said Anish Shah, CEO and MD, Mahindra and Mahindra.

Shah also adds that the rationalisation measures will not only provide immediate relief to households but also strengthen key sectors such as automobiles, agriculture, healthcare, renewable energy, and MSMEs—all of which are vital to job creation and sustainable growth. “The correction of long-pending inverted duty structures in critical industries is welcome,” he added.

“At Mahindra, we view these reforms as transformative. They simplify compliance, expand affordability, and energise consumption, while enabling industry to invest with greater confidence,” said Shah. The GST reforms are a bold step in line with the vision articulated by the Prime Minister of building a citizen-centric, future-ready Bharat, according to Shah. “It strengthens India’s economic foundations and will help drive the next phase of equitable and inclusive growth- journey towards Viksit Bharat @2047.”

Rajesh Jejurikar, ED and CEO, Auto and Farm Sector, Mahindra & Mahindra, applauds the Government for this landmark GST rationalisation, which will have a far-reaching positive impact across the automotive and farming sectors. “The move makes tractors and farm machinery more affordable for farmers, reduces costs for commercial vehicles and improves accessibility for personal mobility through rationalisation of rates across all SUVs. Together, these measures are expected to stimulate demand and drive inclusive growth across the entire ecosystem,” he added.

Jejurikar also expressed his appreciation for the continuation of the 5% GST rate on EVs, which is a critical enabler of India’s clean mobility vision, according to him. “This measure will further accelerate the adoption of electric vehicles and reinforce India’s leadership in sustainable, green transportation,” he said.

According to domestic brokerage Emkay Global, Mahindra & Mahindra is expected to be the biggest beneficiary of the GST cuts, with a 10% reduction across its portfolio. Nearly two-thirds of its lineup will now fall under the 40% slab compared to 50% earlier (with cess), while the rest shifts to 18% from the previous 28% slab.

Mahindra retailed 43,778 vehicles in August, second only to Maruti Suzuki, and retailing 3,236 electric vehicles, according to data accessed from Vaahan. It dominates the tractor market, holding a 45.2%. It dispatched 1.33 lakh tractors in the first quarter, a 10% increase from the same period last year.

Mahindra shares are trading higher by 5.98% at ₹3,482.50 as of 1:23 PM.