Neemuch, Sep 24 (NationPress) In a significant relief for agricultural producers and traders, the Central government, under Prime Minister Narendra Modi’s guidance, has dramatically cut the Goods and Services Tax (GST) on tractors from 12% to 5%, effective from September 22. This initiative, part of the recently unveiled GST 2.0 reforms, has generated widespread excitement throughout rural India, particularly in Madhya Pradesh's Neemuch, where its effects are already evident.

Previously, purchasers of new tractors faced a 12% GST, which imposed a considerable financial strain, especially on small and marginal farmers. The revised 5% rate now translates to savings of between Rs 20,000 and Rs 1,00,000 per tractor, depending on the specific model. Furthermore, similar tax relief has been extended to other farming machinery, providing essential support to India’s agricultural community.

The timing of this GST reduction aligns perfectly with the festive season, a time known for heightened rural expenditures. Tractor showrooms in Neemuch and other agricultural areas are experiencing a notable increase in customer interest and purchases.

This decision feels like a celebration of savings, said local farmers, many of whom had been waiting to purchase tractors pending the government's GST announcement.

Ashish Patidar, a farmer from Janakpur in Neemuch district, expressed, "We had been utilizing an old tractor my father bought years ago. We were holding off on purchasing a new one, hoping for a GST cut after the Prime Minister's announcement on August 15. With the GST now officially lowered to 5%, we've acquired a new tractor and saved Rs 45,000. Tractors are crucial for our work. We are thankful to PM Modi for considering our plight and providing this essential relief."

Babulal Banjaria, a tractor dealer and District President of the Tractor Dealers’ Association, remarked, "Having been in the tractor industry for 40 years, this is one of the most commendable actions I've witnessed from the government. The GST reduction has generated substantial interest among farmers. Daily foot traffic and sales have surged. This initiative benefits both farmers and traders. The previous 12% GST has now become just 5%, offering farmers a direct advantage of 7%."

Arjun Bairagi, a farmer from Piplon village, shared his enthusiasm: "Today, I bought a new tractor and enjoyed a Rs 50,000 discount due to the GST reduction. We had been planning this purchase for quite some time, and now, with government assistance, it has become a reality."

Dinesh Patidar, a showroom operator in Neemuch, noted, "This GST reduction is a significant boost for farmers and businesses alike. Both farmers and we are pleased. It’s a progressive step that will positively influence the rural economy in the long run."

Member Banjara, a farmer from Rampuria village, stated, "I purchased a new tractor during Navratri, and the GST cut saved me Rs 50,000. The tractor now costs Rs 7 lakh. I’m thankful to the Prime Minister for this relief."

This strategic tax relief is anticipated to create ripple effects throughout the rural economy. By lowering the costs of tractors and agricultural machinery, the government is promoting mechanization and modern farming practices. The increased adoption of machinery is expected to boost productivity, decrease labor dependency, and stabilize farmers' incomes.

It's not only farmers who are celebrating. Local markets are experiencing heightened activity, benefiting retailers, suppliers, and service providers linked to agriculture. Traders have also commended the government for addressing their concerns and taking decisive action.

Shikhar Pagaria, a tractor dealer in Neemuch, emphasized the broader benefits. "Previously, GST on tractors was 12%, but it’s now just 5%. This 7% difference means savings ranging from Rs 20,000 to Rs 90,000, depending on the model. Farmers are very excited. A few months ago, showroom visits were down. Now they are on the rise again. This initiative is poised to uplift the entire agricultural ecosystem. I sincerely applaud the government, especially PM Modi, for delivering such timely and meaningful support," he told IANS.