New GST on Tractors in India: Exemptions and 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.
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 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% |
Item
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New GST Rate
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HSN Code
New GST Rate
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New GST Rate
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New GST Rate
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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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HSN Code
Old GST Rate
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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.
