Lok Sabha Question No. 175 (STARRED), answered on 2022-12-19
Subject: GST on Agriculture Equipment
Ministry: FINANCE
Asked by: Hanuman Beniwal

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

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## LOK SABHA

## STARRED QUESTION NO. *175

## TO BE ANSWERED ON MONDAY, DECEMBER 19, 2022/AGRAHAYANA 28, 1944 (SAKA)

## GST ON AGRICULTURE EQUIPMENT

## †*175. SHRI HANUMAN BENIWAL:

Will the Minister of Finance be pleased to state:

- (a) the details of the agriculture equipment included under the purview of GST, at present;
- (b) the details of the percentage of GST applicable on the said items, equipment-wise;
- (c) whether the Government proposes to include these equipment in the zero per cent GST category in the interest of farmers;
- (d) if so, the details thereof and the time by which it is likely to be done; and
- (e) if not, the reasons therefor?

## ANSWER

## MINISTER OF FINANCE SHRIMATI NIRMALA SITHARAMAN

- (a) to (e): A statement is placed on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO THE LOK SABHA STARRED QUESTION NO. 175 RAISED BY SHRI HANUMAN BENIWAL FOR 19 TH  DECEMBER, 2022 ON GST ON AGRICULTURE EQUIPMENT:

- (a)  &  (b):  The  details  of  the  agriculture  implements  and  equipment  under  the  purview  of GST   and the rate of GST applicable on such items are as below:
- (c), (d) & (e): The GST rates and exemptions are prescribed based on the recommendations of the GST Council, which is a constitutional body comprising of members from both the Union and State Governments. There is no recommendation from GST Council for change in GST rate in this regard.

|   Sl. No. | Description of Agricultural Equipment                                                                                                                                                                                                                                                                                                                                             | GST Rate   |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
|         1 | Agricultural implements manually operated or animal driven i.e. Hand tools, such as spades, shovels, mattocks, picks, hoes, forks and rakes; axes, bill hooks and similar hewing tools; secateurs and pruners of any kind; scythes, sickles, hay knives, hedge shears, timber wedges and other tools of a kind used in agriculture, horticulture or forestry other than Ghamella. | Nil        |
|         2 |  Agricultural machinery for soil preparation or cultivation;  Harvesting or threshing machinery, including straw or fodder balers; grass or hay mowers;  Other agricultural machinery, including germination plant fitted with mechanical or thermal equipment                                                                                                                 | 12%        |
|         3 |  Machines for cleaning, sorting or grading fruits, or other agricultural produce;  Machines for cleaning, sorting or grading, seed, grain or dried leguminous vegetables.                                                                                                                                                                                                       | 18%        |

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