GST reforms to benefit 1L farmers in Gujarat

Ahmedabad: Gujarat Agriculture Minister Raghavji Patel announced that the state government has extended the deadline for farmers to purchase tractors and farm equipment under the Agricultural Mechanisation Scheme, enabling them to benefit from the revised GST rates, set to take effect from September 22.

Under the reforms, GST on tractors has been reduced from 12 per cent to 5 per cent, while tyres and other tractor parts have seen a cut from 18 per cent to 5 per cent. Similarly, GST on farm mechanisation tools and micro-irrigation equipment has been slashed from 12 per cent to 5 per cent, and micro-nutrients and bio-pesticides will now attract only 5 per cent GST instead of 12 per cent. The rate on ammonia and sulphuric acid- key raw materials for fertiliser production - has also been lowered from 18 per cent to 5 per cent.

Minister Patel informed the Assembly that the move, undertaken in line with GST reforms spearheaded by Prime Minister Narendra Modi, would substantially reduce input costs in agriculture."The price of tractors will come down significantly. Farmers will now save an additional Rs35,000 to Rs45,000 over and above the state subsidy of Rs1 lakh on tractor purchases," he told the Assembly.