Council cuts GST to 5% on farm goods in major relief for farmers

In a big boost for farmers, the GST Council on September 3 reduced the goods and services tax rates on a number of farm goods to 5 percent from 12 percent, including tractors, agricultural, horticultural or forestry machinery for soil preparation or cultivation, lawn or sports-ground rollers, nozzles for drip irrigation equipment or nozzles for sprinklers.

However, the reduced rate will not be applicable to road tractors for semi-trailers with an engine capacity of more than 1800 cc.

More items that saw a reduction on the GST rates to 5 percent are the following:

-- Fixed Speed Diesel Engines of power not exceeding 15HP
-- Other hand pumps
-- Sprinklers; drip irrigation system including laterals; mechanical sprayers
-- Harvesting or threshing machinery, including straw or fodder balers; grass or hay mowers; parts thereof
-- Other agricultural, horticultural, forestry, poultry-keeping or bee-keeping machinery, including germination plant fitted with mechanical or thermal equipment; poultry incubators and brooders; parts thereof
-- Composting Machines
-- Self-loading or self-unloading trailers for agricultural purposes
-- Hand propelled vehicles such as hand carts, rickshaws and the like; animal drawn vehicles