---
title: "New GST on Tractor 2026: 5% Rate on Tractors & Agricultural"
description: "New GST rate on tractors in 2026 is 5% on all farm tractors and agricultural equipment. Busy auto-applies the right GST slab on every invoice effortlessly."
canonical: "https://busy.in/gst-rates/tractor/"
author: "Nishant"
published: "2025-05-15T09:48:50.000Z"
category: "GST Rates"
---

-   Tractors used for agricultural purposes are generally exempt from GST, subject to applicable classification.
-   Tractor parts, accessories, tyres, trailers, and agricultural implements are taxed according to their respective HSN classifications, with many eligible items attracting **5% GST**.
-   Agricultural machinery and implements such as rotavators and seed drills may attract **5% GST** under applicable categories.
-   Correct HSN classification is important for tractor dealers and agricultural equipment businesses to ensure GST compliance.

# New GST on Tractors in India: Exemptions and Rates

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.

## New GST Rate on Tractors & Agricultural Implements

The Government of India is updating GST rates effective after **22 Sep 2025**. Below are the **expected new GST rates** for tractors and related items (no compensation cess), aligned with the agriculture-focused rationalisation.

Most items earlier at **12%** are expected to move to **5%** in this category; existing **exemptions** continue.

## HSN Code and New GST Rate on Tractors

| Item | HSN Code | New GST Rate |
| --- | --- | --- |
| Tractors (without accessories) | 8701 | 0% (Exempt) |
| Tractor parts and accessories | 8708 | 5% |
| Tractor tyres | 4011 | 5% |
| Tractor trailers | 8716 | 5% |
| PTO Shafts and Drive Shafts | 8483 | 5% |
| Agricultural Implements (attached) | 8432 | 5% |

_Note:_ Rates shown are the expected post–22 Sep 2025 GST rationalisation for agriculture. Where an item previously had 12%, it’s moved to 5% here; tractor exemption remains.

## Is GST Applicable on Tractors?

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.

## HSN Code and Old GST Rate on Tractors

(Old GST Rates – Applicable Until 21st September)

| Item | HSN Code | Old 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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## **GST on Tractor Parts and Accessories**

While the main tractor unit enjoys tax exemption, its parts and accessories are taxable. The applicable GST rate depends on the item:

-   Tyres and tubes → **5% GST**
-   Tractor trolleys and trailers → **5% GST**
-   Spare parts and accessories → **5% GST**
-   Attachments like rotavators, harrows, and seeders → **5% GST**

So, even though tractors are exempt, additional parts and accessories purchased with them may attract GST based on their applicable HSN classification.

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## **GST on Tractor Tyres and Tubes**

One commonly asked question is about **GST on tractor tyres**. Tyres are essential for tractor operations but are taxable separately from the exempt tractor unit. The GST rate applicable to tractor tyres, tubes, and flaps is **5%**.

For farmers and dealers, this means that while buying a tractor may be tax-exempt, replacing tyres or purchasing additional wheels will attract **5% GST**.

## GST on Tractor Implements and Attachments

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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## GST Exemption Benefit for Farmers

The GST exemption on tractors gives a big financial relief to farmers. Here’s how:

-   Lower upfront cost on the primary vehicle
-   No GST-related paperwork for the tractor unit
-   Encouragement to invest in modern equipment

This exemption makes agricultural mechanization more affordable and helps small and marginal farmers upgrade their tools.

## Conclusion

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.

## About the author

**Nishant**

I am a Chartered Accountant with more than five years of experience in the accounting field. My areas of expertise include GST, income tax, and audits. I am passionate about sharing knowledge through blogs and articles, as I believe that learning is a lifelong journey. My goal is to provide valuable insights and simplify financial matters for individuals and business owners alike.

## Frequently asked questions

### What is the GST rate on tractors in India?

The **GST rate is 0%** for tractors sold without attachments.

### Is GST applicable on tractor tyres?

Yes, GST is applicable on tractor tyres. **Tractor tyres attract 5% GST** under the revised GST structure.

### What is the GST on tractor spare parts?

Spare parts and accessories for tractors attract **5% GST** under the revised GST structure, subject to their applicable HSN classification.

### Are attachments like rotavators taxed separately?

Yes, tractor attachments and agricultural implements are taxed separately from the tractor. Eligible agricultural implements such as rotavators, harrows, and seeders attract **5% GST** under the revised GST structure.

### Why are tractors exempt from GST but parts are not?

The tractor is considered a necessity for farming, so it's **tax-exempt**. But accessories and parts are treated separately under GST rules.

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