Lok Sabha Question No. 2000 (UNSTARRED), answered on 2023-03-13
Subject: GST on Agricultural Equipment
Ministry: FINANCE
Asked by: Anumula Revanth Reddy

## LOK SABHA

## UNSTARRED QUESTION NO.2000

## TO BE ANSWERED ON MONDAY THE 13 TH   MARCH, 2023 /PHALGUNA 22, 1944 (SAKA)

## GST ON AGRICULTURAL EQUIPMENT

## 2000. SHRI ANUMULA REVANTH REDDY:

Will the Minister of FINANCE be pleased to state:

- (a) the list of agricultural equipment included under the purview of GST with the respective percentage of GST for the same;
- (b)  whether  the  Government  proposes  to  decrease  GST  rate  on  machines  for cleaning,  sorting  or  grading  fruits,  or  other  agricultural  produce  and  if  so,  the details thereof and if not, the reasons therefor; and
- (c)  whether the Government proposes to impose  zero rate GST on agricultural equipment for the benefit of farmers and if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

Part (a): The details of the agriculture equipment under the purview of GST and the rate of GST applicable on such items are as under: -

|   S. 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                                                                                                                                                                                                                                                                                                                                 | 12%        |

|    | 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   |     |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----|
|  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% |

Part  (b)  &  (c): 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.

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