The products on which 5 percent GST will be imposed mainly from September 22, consist of ghee, condensed milk, butter, other fats and cheese, milk cans, prepared/preserved veggies, fruits, nuts, natural honey, ready or maintained fish, kendu
The GST Council, chaired by Union Finance Minister Nirmala Sitharaman, has actually acceded to lots of long pending needs of the farming sector and lowered the Goods and Services Tax, primarily to 5 percent, on numerous products consisting of tractors, dairy items, basic materials to produce fertilizers, biopesticides and farming devices. Farmer leaders, market authorities, agri tech business, and lots of others have actually valued the relocation and hope it will assist speed up farm sector development.
The council has actually likewise chosen to totally get rid of the GST by bringing it to no from 5 percent on products such as ultra heat (UHT) milk and paneer.
The products on which 5 percent GST will be imposed (which are presently under 12 percent and 18 percent pieces), primarily from September 22, consist of ghee, condensed milk, butter, other fats and cheese, milk cans (made from iron, steel or aluminium), prepared/preserved veggies, fruits, nuts, natural honey, ready or maintained fish, kendu leaves (utilized in bidi making).
Other products where 5 percent rate will apply are repaired speed diesel motor of power not going beyond 15HP, hand pumps, nozzles for drip watering devices and sprinklers, farming and horticultural equipment for soil preparation, harvesting and threshing equipment, composting makers and tractors (other than roadway tractors for semi-trailers of engine capability more than 1800 cc).
The 5 percent rate will likewise use to self-loading farming trailers and hand-propelled automobiles such as hand carts, sulphuric acid, nitric acid and ammonia, 12 biopesticides such as Bacillus thuringiensis versions, Trichoderma viride, Trichoderma harzianum, Pseudomonas fluoresens, Beauveria bassiana, NPV of Helicoverpa armigera, NPV of Spodoptera litura, neem-based pesticides and Cymbopogan, all micro-nutrients covered under the Fertiliser Control Order, 1985.
Rear tractor tires and tubes, farming diesel motor of cylinder capability going beyond 250 cc for tractors, hydraulic pumps for tractors, rear wheel rim, centre real estate, transmission real estate, front axle assistance, bumpers, brake assembly, transmission, trans-axles, radiator assembly and cooling system parts– all utilized in tractor fixing– will draw in 5 percent GST from September 22.
“The increase in farming will take place at a multi-layered level and likewise in all its allied activities. The farm performance will increase thanks to decreased fertiliser expenses, the freezer and agri processing will acquire, and mechanisation will increase in farming,” a senior Agriculture Ministry authorities stated. Apiculture, dairy farming and co-operatives included in these activities will be more successful, the authorities included.
“The GST rate cut will likewise assist India end up being more competitive versus imported foodstuff and packaged foods,” the authorities stated.
Released on September 4, 2025
