In a big move ahead of the festive season, the Centre is preparing to roll out major GST relief measures with a simplified 5% and 18% tax structure, sources told ET Now. The reforms are expected to be taken up in the next GST Council meeting scheduled for September 3–4.
According to sources, tractors may see GST cut from 12% to 5%, while several farming equipment like plows, seeders, transplanters, and cultivators could also move to the 5% slab. Similarly, dairy machinery may be brought under 5% GST.
In a boost for the fisheries sector, fish and seafood in prepared or preserved form may attract just 5% GST. These cuts are expected to provide relief to agriculture and allied sectors.
The Group of Ministers (GoM) has accepted the Centre’s plan for the two-rate GST structure and agreed to abolish the 12% and 28% slabs, bringing in simplicity and lowering tax rates for critical sectors.
Officials said the Centre is committed to implementing these reforms before the festive season to help revive demand and reduce costs for farmers and consumers alike.
