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

Shivraj Singh Chouhan, the Union Minister for Agriculture and Farmers’ Welfare and Rural Development, chaired a key meeting to discuss the latest GST reforms for agricultural machinery on Friday in New Delhi.

Among those present in the meeting were representatives from the Tractor and Mechanisation Association (TMA), Agricultural Machinery Manufacturers Association (AMMA), All India Combine Manufacturers Association (AICMA and Power Tiller Association of India (PTAI), among others, who participated both in person and virtually.

Speaking to media persons after the meeting, Chouhan thanked Prime Minister Narendra Modi for the GST rate cuts and shared the details of the discussions. He stated that the GST on agricultural machinery, previously at 12% and 18%, has now been reduced to 5%, effective from September 22. 

This reduction will directly benefit farmers, the union 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.

Union minister Chouhan 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 complete transparency. Chouhan stated that the reduction in GST rates is a significant step that will have a far-reaching impact. 

Later, elucidating on the significant price reductions, he said that a 35 HP tractor will now be cheaper by ₹41,000, a 45 HP tractor will now be cheaper by ₹45,0050 HP tractor will now be cheaper by ₹53,000, and a 75 HP tractor will now be cheaper by ₹63,000.

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

Chouhan also 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.

Information about the GST rate reduction will be communicated to farmers during the upcoming second phase of the ‘Viksit Krishi Sankalp Abhiyan’ for Rabi crops, beginning October 3, so that they can make the best use of it for advanced farming. 

Chouhan said that suitable measures will be taken to strengthen farm mechanisation. Suggestions from manufacturer associations will be considered while framing future plans. He urged the representatives to minimise the role of middlemen and ensure farmers directly receive the benefits of GST reforms.