New GST on Tractors in India: Exemptions and Rates
- GST on tractors in India is generally 5% for eligible agricultural tractors under HSN Code 8701, reduced from the earlier 12% GST rate.
- The tractor GST rate 2026 depends on the applicable HSN classification. Tractor parts, accessories, trailers and other agricultural equipment may have different rates.
- Correct HSN classification helps tractor dealers and agricultural businesses apply the right GST rate and maintain compliance.
- Tractor trolleys and agricultural implements should be checked separately as their GST rates may vary based on their HSN codes.
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.
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New GST Rate on Tractors & Agricultural Implements
The revised GST rates applicable from 22 September 2025 changed the tax rate for several agricultural products.
HSN Code and GST Rate on Tractors
| Item | HSN Code | New GST Rate (After 22 Sep 2025) | Old GST Rate (Before 22 Sep 2025) |
|---|---|---|---|
| Agricultural tractors | 8701 | 5% | 12% |
| Tractor tyres | 4011 | 5% | 18% |
| Tractor trailers | 8716 | As per applicable HSN classification | As per applicable HSN classification |
| Agricultural implements | 8432 | 5% | 12% (where applicable) |
Item
HSN Code
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Item
HSN Code
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Item
HSN Code
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Item
HSN Code
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Note: GST rates for tractor parts and accessories depend on their specific HSN classification. Businesses should verify the correct HSN code before applying GST on invoices.
GST on Tractor Parts and Accessories
The GST rate on tractor parts and accessories depends on their applicable HSN classification. While agricultural tractors under HSN Code 8701 attract 5% GST, related products such as tyres, trailers, parts and implements are classified separately.
| Product | HSN Code | GST Rate |
|---|---|---|
| Agricultural tractor | 8701 | 5% |
| Tractor tyres and tubes | 4011 | 5% |
| Tractor parts and accessories | Based on component classification | Applicable GST rate as per HSN |
| Tractor trolley/trailer | 8716 | Applicable GST rate as per HSN |
| Agricultural implements and attachments | 8432 | 5% (where covered under applicable classification) |
Product
HSN Code
GST Rate
Product
HSN Code
GST Rate
Product
HSN Code
GST Rate
Product
HSN Code
GST Rate
Product
HSN Code
GST Rate
Businesses should use the correct tractor HSN code and GST rate while preparing GST invoices to ensure accurate tax calculation.
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.
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GST on Tractor Tyres and Tubes
The GST on tractor tyres is 5% under the applicable HSN classification.
Tractor tyres, tubes and flaps are classified separately from tractors. Therefore, replacement tyres and additional wheels attract GST separately at the applicable rate.
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
Agricultural implements such as cultivators, disc harrows, rotavators and seed drills are classified separately from tractors.
The GST rate on tractor implements is generally 5% for eligible agricultural implements covered under the applicable HSN classification.
When tractors and attachments are supplied together, the GST treatment depends on the classification and nature of supply.
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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.
