GST Cut Makes Agricultural Tools Cheaper, Boosts Farm Sector
The article reports that the government’s reduction in the Goods and Services Tax (GST) rates on various agricultural tools and equipment has directly led to a drop in their market prices, providing significant relief to farmers.
Key Benefits of the GST Reduction
- Increased Affordability: The GST rate cut, applied to machinery and components used in farming, directly lowers the purchase cost for farmers. This is particularly beneficial for small and marginal farmers who are highly price-sensitive to capital equipment.
- Boost to Mechanization: By making essential tools more affordable, the reform encourages the mechanization of the agriculture sector, which is vital for improving productivity and efficiency.
- Support for Domestic Manufacturing: The tax relief also supports the manufacturers of agricultural implements (MSMEs) by stimulating demand and increasing sales volume, thereby strengthening the domestic farm equipment industry.
- Specific Items Affected: The rate reduction is relevant to various agricultural tools, such as irrigation pumps, planters, power tillers, and specialized machinery, which previously faced higher tax slabs.
Source :- Times Of India