How Will GST Reforms Benefit One Lakh Farmers in Gujarat?
Click to start listening
Synopsis
Gujarat's Agriculture Minister Raghavji Patel has announced an extension for farmers to purchase tractors and equipment under the Agricultural Mechanisation Scheme. With reduced GST rates coming into effect, this initiative aims to benefit nearly one lakh farmers, lowering costs and boosting productivity in the agricultural sector.
Key Takeaways
- GST on tractors reduced from 12% to 5%
- Tyres and parts now at 5% instead of 18%
- Farm tools GST lowered from 12% to 5%
- One lakh farmers expected to benefit
- Significant savings on tractor purchases
Ahmedabad, Sep 10 (NationPress) In a significant announcement, Gujarat's Agriculture Minister Raghavji Patel revealed that the state government has prolonged the deadline for farmers to acquire tractors and agricultural machinery under the Agricultural Mechanisation Scheme. This extension permits farmers to take advantage of the updated GST rates, which are set to come into effect on September 22.
The reforms include a reduction in GST on tractors from 12% to 5%, while the rates on tyres and other tractor components have decreased from 18% to 5%. Additionally, the GST on farm mechanisation implements and micro-irrigation devices has been lowered from 12% to 5%, and micro-nutrients along with bio-pesticides will now incur only 5% GST, down from 12%. The tax rate on ammonia and sulphuric acid, essential for fertiliser manufacturing, has also been reduced from 18% to 5%.
Minister Patel informed the Assembly that this initiative, aligned with the GST reforms led by Prime Minister Narendra Modi, will significantly lower agricultural input expenses.
"Farmers can expect a substantial drop in tractor prices, saving between Rs 35,000 and Rs 45,000 in addition to the existing state subsidy of Rs 1 lakh on tractor purchases," he stated during the Assembly session.
He emphasized that approximately one lakh farmers throughout Gujarat are anticipated to benefit from this decision, which will not only reduce the costs associated with mechanisation and irrigation tools but also enhance domestic fertiliser production, ensuring timely availability for farmers.
The state government remains dedicated to fortifying agricultural mechanisation and alleviating financial burdens on farmers. Gujarat possesses a vast agrarian populace, with agriculture employing over half of the state's workforce.
As per the Agriculture Census 2015-16 (the most recent extensive dataset available), the state recorded around 61.2 lakh operational holdings, with nearly 75% being small and marginal farmers owning less than two hectares of land. These holdings collectively cover approximately 9.5 million hectares of arable land, establishing Gujarat as one of India's prominent agricultural states.
The primary crops cultivated include cotton, groundnut, wheat, rice, bajra, maize, sugarcane, and various horticultural produce. Livestock farming is also crucial, particularly in districts such as Kutch and Saurashtra.
Point of View
The extension of the GST reforms in Gujarat represents a significant step towards supporting the agricultural sector. The government's commitment to reducing input costs and enhancing mechanisation is vital for the sustainability and growth of agriculture in the region. With a focus on empowering farmers, these policies align with national goals of boosting the agrarian economy.
NationPress
10/09/2025
Frequently Asked Questions
What is the new GST rate on tractors?
The GST rate on tractors has been reduced from 12% to 5%.
How many farmers are expected to benefit from the GST reforms?
Approximately one lakh farmers in Gujarat are expected to benefit from these reforms.
What is the deadline for purchasing under the Agricultural Mechanisation Scheme?
The deadline has been extended, allowing farmers more time to purchase tractors and equipment.
What are the benefits of the reduced GST rates?
The reduced GST rates will significantly lower the costs of purchasing tractors, irrigation tools, and fertilisers for farmers.
What is the government’s stance on agricultural mechanisation?
The government is committed to enhancing agricultural mechanisation and reducing financial strain on farmers.
