Understanding GST rates for Agricultural Machinery

GST or Goods and Services Tax is a value-added tax that has been implemented in India since July 1, 2017. This tax system has replaced all the previous indirect taxes like VAT, CST, Excise Duty, and Service Tax. The GST rates have been divided into four slabs- 5%, 12%, 18%, and 28%. The GST rates applicable to Agricultural Machinery is 12%. This rate has been standardized across India for all agricultural machinery and equipment except for those that fall under the GST HSN code 8432.

GST HSN Code for Agricultural Machinery

GST HSN code or Harmonized System of Nomenclature is a globally accepted nomenclature system that has been used to classify goods and services under GST. The GST HSN code for Agricultural Machinery is 8436. This code covers a wide range of machinery, equipment, and devices used in agriculture. This code is further divided into various sub-categories, which are as follows:

8436 10 00 - Machinery for preparing animal feeding stuffs
8436 20 00 - Machines for cleaning, sorting or grading agricultural produce
8436 30 00 - Machines for milling or working cereals or dried vegetables
8436 40 00 - Machines for cleaning, sorting or grading seeds or dried leguminous vegetables
8436 80 00 - Other agricultural, horticultural, forestry or bee-keeping machinery, including germination plant fitted with mechanical or thermal equipment; poultry incubators and brooders

GST Rates for Different Types of Agricultural Machinery

Here are the GST rates applicable to various types of agricultural machinery:

Harvesting Machinery

The GST rate for Harvesting Machinery like combine harvesters, Reaper-binder, and other harvesting machinery is 12%.

Cultivating Machinery

The GST rate for Cultivating Machinery like ploughs, harrows, cultivators, and weeders is 12%.

Haymaking Machinery

The GST rate for Haymaking Machinery including mowers, tedders, and rakes is 12%.

Threshing Machinery

The GST rate for Threshing Machinery including threshers and cleaners is 12%.

Planting Seeding Machinery

The GST rate for Planting Seeding Machinery including transplanters, seed drills, and planters is 12%.

Irrigation Machinery

The GST rate for Irrigation Machinery including pumps, sprinklers, and drip irrigation systems is 12%.

Post-Harvest Machinery

The GST rate for Post-Harvest Machinery including cleaning, sorting, grading, and packaging machinery is 12%.

Conclusion

Understanding the GST rates and HSN code for Other Agricultural Machinery is essential for Small and Medium business owners in India. The GST rate for Agricultural Machinery is 12%, and the GST HSN code for Agricultural Machinery is 8436. This code covers a wide range of machinery, equipment, and devices used in agriculture. The GST rates for different types of Agricultural Machinery has been standardized at 12%. By following these GST rates and HSN codes, Small and Medium business owners can ensure that they are not charged extra or get into any legal troubles for non-compliance.