The GST Council has removed 12 percent and 28 percent tax slabs from the GST system. These new changes will be effective from September 22, 2025. The first GST system had a total of 4 slabs – 5 percent, 12 percent, 18 percent and 28 percent. From September 22, only 2 slabs will remain – 5 percent and 18 percent. In addition, a new slab of 40 percent GST will be applied for luxury and harmful products. Keeping in mind the crores of farmers of the country, the government has also announced to remove agricultural equipment from 18 percent GST slab and keep 5 percent in GST slab.
Improvement in GST will reduce the cost of farmers
The reforms made in GST in the agriculture sector will reduce the cost of farmers and will also benefit cooperative societies and farmer producing organizations (FPOs). This will make the productivity of fertilizer and agricultural equipment cheaper. The steps taken in the field of cold storage and food processing will stop waste and farmers will also get better benefits. This will also make dairy, honey and other related activities more beneficial. These steps will make Indian agriculture more strong and self -sufficient according to the vision of self -sufficient India. Let us know how much GST has been reduced on what things related to agriculture have been reduced.
The GST on the tractor (less than 1800 cc) has been reduced from 12 percent to 5 percent. Low GST on tractor and agricultural equipment will make mechanization more economical for farmers.
Hydraulic pumps for tractor items such as tractor tires and tubes, tractors have also been reduced from 18 percent to 5 percent.
The GST rate on Kendu leaves has been reduced from 18 percent to 5 percent.
GST on commercial cargo vehicles (such as truck and delivery van) has been reduced from 28 percent to 18 percent.
GST on prepared and protected vegetables, fruits and fruits has been reduced from 12 percent to 5 percent.
GST has been reduced from 12 percent to 5 percent on fixed speed diesel engines, harvesting or threshing machinery, composting machine, etc. up to 15 hp.
GST on solar energy -based equipment will be reduced from 12 percent to 5 percent. Cheap solar energy -based equipment will reduce irrigation costs which will help farmers.
GST has been reduced from 12 percent to 5 percent on 12 bio-insects and many micronutrients.
GST on prepared/protected vegetables, fruits, fruits has been reduced from 12 percent to 5 percent. This will boost investment in cold storage, food processing and price promotion.
There will be no GST on milk and cheese.
GST on butter, ghee etc. has been increased to 5% instead of 12%.
GST has been reduced from 12 percent to 5 percent on milk compartments (containers made of iron, steel or aluminum).
GST on prepared or protected fish has been reduced from 12 percent to 5 percent. This is expected to promote aquatic agriculture and especially fisheries across the country.
GST on artificial honey, whether it is mixed with natural honey or not, has been reduced from 18 percent to 5 percent. GST will also be reduced on natural honey. This will benefit the major producers of natural honey, ie beekeepers, tribal communities and rural self -help groups.
