GST on Tractors, Implements & Tyres 2025 - New Rates & Savings for Farmers

Starting Sept 22, 2025, India’s GST regime slashed taxes on farm equipment. Almost all tractors, implements, and tyres now carry only 5% GST, down from 12–18% previously.

This applies across India, from Punjab to Tamil Nadu so farmers everywhere benefit from cheaper machinery and spare parts.

Key Takeaway: Nearly all farm machines and their parts are now 5% GST, making equipment significantly cheaper.

With the new 5% GST rate, farmers now pay significantly lower tax on tractors, tyres, and implements. Earlier, these items attracted 12% to 18% GST, which increased the overall purchase price. By reducing the rate to 5%, the government has lowered the tax burden on every major farm machine.

In simple terms, where farmers earlier paid between ₹12–₹18 in tax for every ₹100 spent, now they pay only ₹5. This reduction means that the cost of essential items like tractor tyres, spare parts, and implements becomes more affordable.

When applied to larger purchases—such as complete tractors, multiple implements or bulk spare parts—the difference can add up to thousands or even lakhs of rupees. This financial relief enables farmers to invest in better technology, maintain their equipment more regularly and ultimately modernize their farming operations at a lower effective cost.

The GST cuts apply to almost every type of agricultural machine, ranging from small diesel engines and hand pumps to sprayers, power tillers, combine harvesters, and large tractors up to 1800 cc. The rates are uniform across all states in India, which means farmers in Punjab, Maharashtra, or Tamil Nadu pay the same GST. At the same time, manufacturers continue to receive input tax credits, ensuring that no hidden costs are passed on to farmers.

By reducing taxes, the government has made tractors, tyres, and implements more affordable. This encourages farmers to upgrade to better machinery, lowers the overall cost of agricultural inputs, and supports higher farm productivity. In the long run, these changes make modern equipment accessible to more farmers, strengthening agriculture nationwide.

Q1: Which tractors get 5% GST?

All agriculture use tractors whether 2WD or 4WD, are now taxed at only 5% GST. All commercial use tractors with engines up to 1800cc are now taxed at only 5% GST and heavy tractors above 1800 cc remain taxed at 18%.

Q2: Are tractor tyres and tubes included in the GST cut?

Yes, both front and rear tractor tyres as well as inner tubes are now under 5% GST, reduced from 18%. This is a big relief because tyres are one of the most frequently replaced parts. For instance, a set of rear tyres for a 50 HP tractor or smaller front tyres for orchard tractors are now much cheaper due to the lower tax. Even spare inner tubes, which farmers often keep for emergencies, will cost less under the new slab.

Q3: What about farm implements like cultivators,ploughs and harvesters?

Most farm implements and attachments have shifted to the 5% GST category. This includes soil-preparation tools like mouldboard ploughs, disc ploughs, harrows, rotavators, cultivators, and land rollers. It also covers sowing and spraying equipment such as seed drills, planters, fertilizer broadcasters, and power sprayers. Even larger machines like combine harvesters, straw balers, and reapers are now taxed at 5%. For example, whether you are buying a simple two-disc plough or a straw baler for paddy fields, the GST you pay will be the same reduced 5%.

Q4: Are spare parts cheaper now?

Yes, almost all key spare parts have seen a tax cut from 18% to 5%. This includes items like axles, radiators, clutches, brake assemblies, hoods, fuel tanks, panels, and gearboxes. Farmers who regularly replace wear-and-tear parts, such as clutch plates or brake shoes, will save more. Even bigger components like wheel rims and hydraulic pumps, which earlier attracted 18% GST, now carry just 5%. This makes both routine maintenance and major repairs more affordable.

Q5: Does this GST cut apply in all states?

Yes. GST is a nationwide tax, so the reduced rates apply in every Indian state and union territory. Whether you are a farmer in Punjab, Uttar Pradesh, Maharashtra, Karnataka, or Tamil Nadu, the GST on tractors, tyres, and implements is the same—only 5%. For example, if a farmer in Bihar buys a cultivator and another farmer in Andhra Pradesh buys a power sprayer, both will pay the same 5% GST rate. This uniformity ensures farmers everywhere benefit equally without worrying about state-wise variations.

The new GST rules bring almost all farming machinery and equipment into the 5% tax category. This covers tractors(commercial use) up to 1800 cc, commonly used implements such as ploughs, cultivators, seeders, and sprayers, as well as tyres, tubes, and spare parts. Items that earlier attracted higher GST rates of 12% or 18% are now uniformly taxed at 5%.

With this change, farmers across India will face lower upfront costs when purchasing or upgrading machinery. The reduction eases the financial burden, encourages investment in modern tools, and supports higher productivity in agriculture. In effect, the reform makes essential machines more accessible while ensuring long-term benefits for the farming community.