Post-GST rationalisation, Haryana residents to get Rs 4K cr tax benefit: CM

Haryana Chief Minister Nayab Singh Saini today said that post-GST rationalisation, state residents would get the benefit of at least Rs 4,000 crore of tax benefits.

Holding a press conference today, Saini described the GST reforms as a milestone towards building an ‘atmanirbhar Bharat’. He added that the changes would also play a key role in realising the Prime Minister’s call for ‘swadeshi’ and ‘Make in India’.

He said that India would now have only two standard GST rates, i.e. 5 per cent and 18 per cent. The previous 12 percent and 28 percent slabs have been scrapped and a special 40 per cent rate has been retained for ‘demerit’ goods.

Highlighting that the reforms primarily take into account farmers’ interests, the Chief Minister said that Haryana, being an agrarian state, had urged the GST Council to reduce GST rates on agricultural equipment used for crop residue management, a request that was accepted.

The Chief Minister said that packaged milk and cheese have been made GST-free, while rates on ghee, butter and dry fruits have been cut from 12 per cent to 5 per cent. These steps, he said, would not only reduce inflation but also encourage traditional food businesses, strengthen food processing in Haryana, boost farmers’ value addition and create rural jobs.

The Chief Minister said that the council also lowered GST on irrigation and tillage machinery from 12 per cent to 5 per cent, reducing equipment costs. Bio-pesticides and fertiliser inputs, such as ammonia, sulphuric acid and nitric acid, will now attract only a 5 per cent GST, promoting sustainable agriculture, he informed.

The Chief Minister announced that the GST rate for tractors has been reduced from 12 per cent to 5 per cent for engines with a capacity below 1800 cc, and from 28 per cent to 18 per cent for higher-capacity tractors. Saini said this progressive step would encourage farmers to adopt modern machinery and accelerate farm mechanisation.

The Chief Minister said that solar and renewable energy equipment would now attract only 5 per cent GST, down from 12 per cent. This, he noted, would cut project costs and promote sustainable, eco-friendly energy.

In textiles, key inputs like yarn and fabric would see GST reduced from 12 per cent to 5 per cent, while sewing machines would attract 5 per cent instead of 18 per cent. These measures will cut production costs, strengthen small and medium enterprises, and generate more jobs, he said. He said that essential life-saving drugs have been made GST-free.

The Chief Minister said that since 2017, continuous efforts have been made to simplify and rationalise the GST framework. This has expanded the tax base in Haryana and led to a significant rise in GST collections. Haryana’s net SGST collection increased from Rs 18,910 crore in 2018-19 to Rs 39,743 crore in 2024-25, marking a growth of 110 per cent.

In 2024-25, Haryana secured the fifth position among major states in terms of total gross GST collection. For financial year 2025-26, Haryana’s net SGST collection is growing at an impressive rate of 20 per cent.