September 4, 2025

Hold your breath, the GST Council has just dropped a mega bombshell for India’s farmers! Chaired by Union Finance Minister Nirmala Sitharaman, the council agreed to slash GST to mostly 5% on a long list of agricultural goodies starting from September 22, 2025. What’s cooking under the new GST menu? Popular dairy items like ghee, condensed milk, butter, other fats, and cheese will now attract only 5% GST — a sweet relief from the old 12-18% slabs! Even milk cans made of iron, steel or aluminium, plus prepared or preserved vegetables, fruits, nuts, natural honey, preserved fish, and the famous kendu leaves used in bidi making are joining the 5% club. But wait, there’s more! Farm heroes like tractors (except some heavy road tractors), trailers, hand-propelled carts, and handy diesel engines under 15 HP will see their GST rate trimmed too. The cut extends to sprinklers, nozzles for drip irrigation, harvesting and threshing machines, and composting equipment. Even biopesticides like Bacillus thuringiensis variants, neem-based pesticides, and 12 other types, plus all micro-nutrients under the Fertiliser Control Order of 1985, will enjoy the new low rate. Not to forget the nuts and bolts – parts used in tractor repair like rear tyres, tubes, hydraulic pumps, axles, bumpers, gearboxes, gearboxes, trans-axles, radiators and cooling systems are all included in the 5% GST kingdom! And that’s not all – the GST Council has also waved a magic wand to remove GST completely (zero tax) on ultra high temperature (UHT) milk and paneer, making these staples even more affordable. A senior Agriculture Ministry official shared the excitement: “The boost in agriculture will happen at a multi-layered level and also in all its allied activities. The farm productivity will increase thanks to reduced fertiliser costs, the cold storage and agri processing will gain, and mechanisation will increase in farming.” He added, “Besides, apiculture, dairy farming and co-operatives involved in these activities will be more profitable.” The official concluded with a bang, “The GST rate cut will also help India become more competitive against imported food products and packaged foods.” This GST cut is a massive cheer for farmers, agri-tech companies, and the whole farming ecosystem. With lower taxes, costs fall, growth accelerates, and India’s agriculture shines brighter on the world stage. Starting September 22, 2025, enjoy the GST magic hitting your farm and kitchen like a refreshing monsoon shower!

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Tags: Gst rate cut, Agriculture sector, Dairy products, Farm machinery, Fertilizers, Biopesticides,