The GST Council has unanimously approved rate cuts on scores of items of daily use, making most goods and services cheaper. The Council has simplified the indirect tax system into a two-tier structure of 5 per cent and 18 per cent from a four-tier structure of 5 per cent, 12 per cent, 18 per cent and 28 per cent.

An additional slab of 40 per cent has been introduced for select items, including tobacco and luxury items. The new rates will come into effect from the 22nd of this month. Our correspondent reports that, in an effort to support farmers and agriculture, the government has significantly reduced GST rates, which will lessen farmers’ financial burdens, encourage rural development, and lower the cost of necessary agricultural equipment.

The government has made significant deductions in GST rates ensuring ease of financial burden on farmers, boosting rural development, and making essential agricultural equipment more affordable. This is in pursuit of uplifting farmers and boosting the agriculture sector. The rate on tractor tyres and parts has been cut down from 18 percent to 5 percent. Meanwhile, the rates of tractors have been slashed from 12 percent to 5 percent. Briefing media in New Delhi yesterday, Union Finance Minister Nirmala Sitharaman said that labour-intensive industries have been given strong support, while farmers and the agriculture sector will also benefit from the decisions.

Industry bodies also welcomed these reforms, Talking to Media, Managing Director of Amul, Jayen Mehta thanked the government for GST cuts on dairy products.

Several other utilities including Specified Bio-Pesticides, Micro Nutrients, Drip Irrigation System and Sprinklers, alongside various Agricultural machines for cultivation, harvesting and threshing have witnessed reduction from 12 percent to 5 percent. The rate deductions are expected to significantly facilitate the farmers and boost the agrarian economy of the country.