Farmers in India are cheering a big win from the government. Prime Minister Narendra Modi’s administration just slashed the Goods and Services Tax (GST) on tractors from 12 percent to 5 percent, starting September 22. This change, part of the new GST 2.0 updates, is easing the wallet strain for small farmers and agricultural traders across rural areas, especially in places like Neemuch, Madhya Pradesh.
Before this, that 12 percent GST tacked on extra costs to new tractors, hitting small and marginal farmers the hardest. Now, at 5 percent, buyers save anywhere from Rs 20,000 to Rs 1 lakh per tractor, based on the model. The relief extends to other farm tools too, giving India’s farming community a much-needed boost.
The timing couldn’t be better—it lines up with the festive season, when rural spending ramps up. Tractor showrooms in Neemuch and nearby spots report a rush of customers and soaring sales. One local farmer called it a “festival of savings,” as many had held off buying until the GST cut came through.
Take Ashish Patidar, a farmer from Janakpur in Neemuch district. He shared, “We’ve been relying on my dad’s old tractor for years. After PM Modi hinted at a GST reduction on August 15, we waited. Now, with the rate at 5 percent, we got a new one and saved Rs 45,000. Tractors are key to our daily work, and we’re thankful to PM Modi for looking out for us farmers.”
Babulal Banjaria, a veteran tractor dealer and head of the local Tractor Dealers’ Association, has been in the business for 40 years. He said, “This is one of the best government moves I’ve seen. The GST drop has farmers buzzing. Visits to showrooms are up every day, and sales are following. That 7 percent difference from the old 12 percent rate directly helps farmers and us dealers too.”
Excitement is everywhere. Arjun Bairagi, from Piplon village, just picked up his new tractor and scored a Rs 50,000 break thanks to the cut. “We’d been planning this for ages, but the government’s support made it happen,” he added.
Showroom owner Dinesh Patidar in Neemuch agrees it’s a game-changer. “Farmers are smiling, and so are we businesses. This will strengthen the rural economy for years.”
Even during Navratri, farmers like Member Banjara from Rampuria village jumped in. He bought a Rs 7 lakh tractor and saved Rs 50,000. “Big thanks to the Prime Minister for this relief,” he said.
This GST reduction on tractors and agricultural machinery isn’t just about immediate savings. It pushes modern farming by making mechanization more affordable. Expect higher productivity, less reliance on manual labor, and steadier incomes for farmers. Rural markets are buzzing too, with more action for retailers, suppliers, and service folks in the ag sector.
Shikhar Pagaria, another Neemuch tractor dealer, put it simply. “The 7 percent GST savings mean Rs 20,000 to Rs 90,000 off per model. Farmers were down a few months back with fewer visits, but now it’s picking up fast. This boosts the whole agricultural ecosystem, and kudos to PM Modi and the government for the timely help.”
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