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Tractors are the backbone of Indian agriculture. Whether you’re a farmer or in the agricultural equipment business, understanding GST on tractor purchases and related items helps in making better financial decisions.
Here’s the good news: Tractors are exempt from GST when sold without accessories or attachments. This means if you buy a basic tractor, you don’t have to pay GST on it.
| Item | HSN Code | GST Rate |
|---|---|---|
| Tractors (without accessories) | 8701 | 0% (Exempt) |
| Tractor parts and accessories | 8708 | 28% |
| Tractor tyres | 4011 | 18% |
| Tractor trailers | 8716 | 18% |
| PTO Shafts and Drive Shafts | 8483 | 18% |
| Agricultural Implements (attached) | 8432 | 12% |
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While the main tractor unit enjoys tax exemption, its parts and accessories are taxable. Here’s how tractor GST rate varies depending on the item:
So, even though the base vehicle is exempt, the overall cost may still include GST if additional parts are purchased.
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One commonly asked question is about GST on tractor tyres. Tyres are essential for operations and do not fall under the exemption. The GST rate is 18%, which also applies to tubes and flaps.
For farmers and dealers, this means that while buying a tractor may be tax-free, replacing tyres or purchasing additional wheels will attract GST.
Implements such as cultivators, disc harrows, rotavators, and seed drills are taxed at 12% GST. These are considered agricultural tools and not part of the tractor itself.
If you’re buying a tractor with attachments already fixed, the whole package might be taxed. So it’s better to purchase them separately when possible.
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The GST exemption on tractors gives a big financial relief to farmers. Here’s how:
This exemption makes agricultural mechanization more affordable and helps small and marginal farmers upgrade their tools.
Understanding the GST rate on tractor purchases and accessories helps farmers and dealers manage costs wisely. While the tractor may be exempt, it’s important to plan for taxes on tyres, parts, and attachments. This knowledge ensures full compliance and smarter buying decisions.
BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.