GST Cut on Farm Equipment to Directly Benefit Farmers: Shivraj Singh Chouhan

25 Oct, 2025

1. Benefits of GST Cut to Farmers
2. How Much Savings Can Farmers Make on Farm Equipment?
3. Conclusion
4. Why Tractor Gyan?

Shivraj Singh Chouhan, the Union Minister for Agriculture and Farmers' Welfare, recently discussed the impact of the new GST cut on farm equipment, aimed at lowering costs for farmers and boosting their productivity. Let's discuss the benefits of these GST cuts in detail. 

Benefits of GST Cut to Farmers

• The GST on many agricultural machines has been reduced from 12%-18% to just 5%.

• Reduced expenses and increased efficiency allow farmers to earn more money. They can later use it to upgrade their tools..

• Renting machinery from Custom Hiring Centers is now even more cost-effective for farmers, as the recent GST cut on farm equipment reduces overall rental expenses

• With cheaper machinery, farmers can mechanise more affordably, which helps reduce manual labour and speed up tasks like sowing, harvesting, and tilling.

How Much Savings Can Farmers Make on Farm Equipment?

According to published reports:

• Compact tractors will see a price reduction of about  ₹23,000.

• For a 35 HP tractor, the expected savings approach around ₹41,000.

• For 45 HP or 50 HP tractors, savings are estimated at ₹45,000–₹53,000.

• For a 75 HP model, savings could go up to ₹63,000.

Other farm implements like threshers, rice-transplanters, and balers also see price drops due to the GST reduction. 

Conclusion

This GST cut is a smart move toward making farming affordable and open to everyone. The government is helping farmers to get better implements, run their businesses more efficiently, and make more money by lowering the taxes on farm equipment.It's not just about saving money; it's also about making Indian agriculture more environmentally friendly and efficient in the future.

The benefit only counts if manufacturers, dealers and service providers pass on the savings fully to farmers. The government is watching that happen.For farmers or stakeholders considering investing in implements, now is the best time.

The timing aligns well with crop planning, mechanisation drives and schemes aimed at boosting crop production and sustainability.

Why Tractor Gyan?

Whenever you're looking for the best claim on tractor or farm equipment deals, you'll want a reliable reference. That's where Tractor Gyan comes in. From comparing tractor specifications to checking updated prices and subsidy eligibility. 

You can find out how much you save on each model for this GST benefit and plan your equipment purchase accordingly. Before you buy an implement, do yourself a favour and visit Tractor Gyan, India's most trusted agri-tech voice, to get all the information you need to make a good choice.