Tractor makers demand GST rate cut to 18%

New Delhi, June 23 

Disappointed over 28% GST on a majority of components, tractor manufacturers have urged the government to treat the industry on a par with construction equipment, which comes in the slab of 18%.

“The present levy is of 28% GST on parts and components of tractors but parts and components of construction equipment, which are close kin to tractors especially under 80 HP, will attract only 18% GST,” the Tractor Manufacturers Association (TMA) said.

Both sectors have similar emission norms but are being treated differently when it comes to GST, despite several representations to the GST Council, it added.

Stating that the farm sector has been “short-changed under the new GST rules” in terms of components and spares of tractors, the TMA said GST rate on tractor parts and components must be revised to 18%.

“Parts of tractors, equipment and implements can be easily identified and used only in tractors and are not usable in automobiles which are high-speed applications as opposed to tractors which are low-speed, high-torque applications,” it said. — PTI