GST cut a boon for farmers, machinery to get cheaper

Farmers are in for major gains from reduced Goods and Services Tax (GST) slabs with the Centre on Friday telling major farm equipment makers and dealers to pass on the benefits of price reductions starting September 22.

After a meeting with top representatives of agricultural equipment companies here today, Union Agriculture and Farmers’ Welfare Minister Shivraj Singh Chouhan said the GST rates on farm equipment had been slashed from 18 per cent and 12 per cent to 5 per cent.

“We met today and I have asked all companies and dealers to make sure the benefits of these rationalised tax structures reach the farmers in real time. We will monitor the transition. We will also send teams to create awareness among farmers,” Chouhan said after meeting leaders of Tractor and Machine Organisation, Agricultural Machinery Manufacturers Association (AMMA), All India Combine Harvester Manufacturers Association (AICMA), and Power Tiller Association of India (PTAI).

The GST rate cut, announced by the Centre recently, will reduce the prices of tractors and other machinery for farmers by 7-13 per cent. The maximum saving of Rs 1,87, 500 will be on a harvest combine (14 feet cutter bar) used to harvest grain crops.

Different categories of tractors will also be cheaper by a range of Rs 41,000 (HP 35) to Rs 63,000 (HP 75).

The cost of a square baler used to compact loose, fibrous agricultural materials like hay, straw, cotton, and sugarcane residues into dense, rectangular bales for easier handling, storage, transportation and preservation of their nutritional value will fall by Rs 93,750.

A straw reaper used for simultaneously cutting, threshing, and collecting straw from harvested crops will cost Rs 21, 875 less.

“The idea behind rate cuts is to make efficient, cheaper equipment available to farmers in order to enhance productivity and cut production costs,” said Chouhan. The rate cuts will start from September 22. “We are committed to raising farmer’s incomes,” he said.