&imwidth=800&imheight=600&format=webp&quality=medium "New GST Rates 2025: Tractors, fertilisers, equipment - Centre extends tax bounty for farmers")
The Goods and Services Tax (GST) Council on Wednesday eliminated the 12 per cent and 28 per cent slabs, moving from a four-slab to a two-slab taxation structure. Most of the goods and services in these two slabs will be moved to the 5 per cent and 18 per cent GST slabs. Announcing the mega move, Finance Minister Nirmala Sitharaman described the decision as a "structural reform". The government has also passed on the benefits of the GST reforms to the agricultural sector, the country's economic backbone.
The Centre has moved several daily-use products like soap, toothpaste, namkeen, chocolates, and coffee to the 5 per cent slab from 12 per cent or 18 per cent slabs. In a mega move, tractors and compositing machines will now attract a GST of 5 per cent from the previous 12 per cent tax.
How Centre's new rates affect the farm sector
Dieselengines up to 15 horsepower, hand pumps, drip irrigation systems and sprayers, harvesting and threshing machines, poultry-keeping or bee-keeping machines, composting machines, tractors, etc, have been moved from the 12 per cent slab to the 5 per cent slab.
Tractor tyres, tubes, agricultural diesel engines (above 250cc), hydraulic pumps for tractors, key tractor parts, wheel rims, centre housing, etc, will now attract a GST of 5 per cent from 18 per cent.
Trending Stories
&im=FitAndFill=(700,400))
National Handloom Day 2026: From Alia Bhatt to Samantha Ruth Prabhu; Actresses who celebrated India's textile heritage as brides
)
The Royals enter the Doctor Who universe: King Charles and Queen Camilla beam into Commonwealth Games in TARDIS
)
Unitree Robotics targets $9 billion valuation in landmark IPO backed by DeepSeek and Tencent
)
India names 27 sites in Arunachal Pradesh
)
Bharat Bhhagya Viddhaata OTT: When will Kangana Ranaut's film stream online?
&im=FitAndFill=(700,400))
How many soldiers operate one S-400 battery?
)
Shakib Al Hasan ready to return to Bangladesh—under one condition
)
‘Fake news’: MEA rejects report claiming India sought defence pact with Israel after Pakistan, Saudi Arabia, Turkey deal
)
Rockstar to unveil GTA 6 extended look ahead of November launch
)
Russia forms Ukrainian Volunteer Spetsnaz Brigade to fight Ukraine
)
Drug-resistant fungus that hides in hair and enters bloodstream reported in 23 US states
)
Technology transfer deal boosts India's defence manufacturing ambitions
)
Border row erupts in Europe after Ceuta crossings, Spain imposes border controls on Italy
)
Morale plummets on USS Abraham Lincoln: Are US sailors reaching a breaking point? | GRAVITAS
)
'Security can't be bought with Pakistan, Turkey deal': Iran tells Saudi Arabia
)
Baba Vanga's 2026 prophecy: 2 predictions 'already came true', 3 terrifying ones remain. Details inside
)
Colombia’s new president Abelardo de la Espriella vows to ‘defeat narco-terrorists’, signals hardline shift
&im=FitAndFill=(700,400))
New Friday OTT releases (August 7, 2026): Operation Safed Sagar, Vadhandhi, Main Vaapis Aaunga- 6 movies and TV shows on Netflix, Prime Video and more
)
Squadron Leader Bhawana Kanth scripts history as Indian Air Force gets its first woman ‘Top Gun’ pilot
)
RSS says Gen Z protests reflect genuine distress
)
Trump says Iranian school bombing photos could be AI-generated - 'I don’t think...'
)
IAF officer held for sharing sensitive information in 'honey trap' case, booked under Official Secrets Act
)
Stray Kids under scrutiny? Fans react to Grammy submission silence after BTS boycott
&im=FitAndFill=(700,400))
Why the Su-30MKI doesn't need external fuel tanks to fly vast distances
)
Jugal Hansraj reunites with Shekhar Kapur after 40 years for Masoom: The Next Generation
)
New speed limits, automatic challans: Big traffic change coming to Delhi-Meerut Expressway. All you need to know
)
India officially names 27 places in Arunachal to counter China's renaming claims
)
Trump calls White House ballroom ruling a 'national disgrace' as court says Congress approval needed
)
US sanctions Iran’s crypto network after Strait of Hormuz attacks, offers $15m bounty for intel on IRGC finance
&im=FitAndFill=(700,400))
Why the Su-30MKI is one of the heaviest fighters ever built
)
Uttarakhand young innovator builds India's own flying vehicle, conducts first test flight: WATCH
)
Chilling video shows students take cover as teen opens fire at Thai school
)
Reese Witherspoon's father hospitalised after poolside incident in Nashville: Report
GST on fertilisers like sulphuric acid, nitric acid and ammonia will be lowered from 18 per cent to 5 per cent.
Gibberellic acid, bio-pesticides will attract a GST of 5 per cent from 12 per cent.
GST rates on cars reduced
The Centre has also reduced GST on cars.Industry body SIAM hailed the decision to reduce GST on vehicles to 18 per cent and 40 per cent, from earlier rates of 28 to 31 per cent and 43 to 50 per cent.
Anish Shah, Group CEO & MD, Mahindra Group, welcomed the decision and said, "The next-generation GST reforms announced today mark a defining moment in India's journey towards building a simpler, fairer, and more inclusive tax system. By moving to a streamlined two-rate structure and focusing on essentials that touch the lives of every citizen, the Government has reaffirmed its commitment to Ease of Living and Ease of Doing Business. These measures will not only provide immediate relief to households but also strengthen key sectors such as automobiles, agriculture, healthcare, renewable energy, and MSMEs."