Farmers in Uttar Pradesh have welcomed the newly implemented GST reforms, saying that the revised tax structure will significantly benefit the agriculture and dairy sectors, especially small and medium-sized farmers.
Under the new GST regime, tax rates on essential agricultural equipment and inputs have been reduced. Tractors with a capacity of less than 1800 cc will now attract only 5% GST, down from the previous high rate. Similarly, taxes on tractor parts, irrigation systems, and harvesting machinery have also been reduced—in many cases from 18% to 5%.
A farmer from Aligarh said, “The reduction in GST on agricultural machinery and solar equipment will reduce our operating costs and increase profits.” “This is a farmer-friendly step by the government.”
In the dairy sector, milk and cheese have been placed in the zero percent GST category, providing relief to both milk producers and consumers. The tax reduction has also made bio-pesticides and micronutrients more affordable.
One farmer highlighted its tangible benefits: “Now we can save ₹40,000-50,000 when buying a tractor. This will encourage more farmers to invest in modern equipment.”
Prime Minister Narendra Modi, in his national address on Sunday, described the updated GST system as the beginning of a “GST Savings Festival” that will promote affordability and ease of doing business. He emphasized that these reforms are designed to support farmers, women, MSMEs, and traders, as well as accelerate India’s growth.
The new tax structure aims to simplify compliance, reduce prices for consumers, and boost sectors ranging from agriculture and renewable energy to manufacturing—which many hope will usher in a new era of accessibility and prosperity for rural India.