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tractor parts: Tractor industry welcomes GST rate cut from 28% to 18% on machine parts | Chennai News - Times of India

by:QY Precision      2019-10-20
Chennai: Before the Harf sowing season, in view of the riots of farmers across the country, the tax commission on goods and services reduced the tax rate on tractor parts from 28% to 18%.
This is a major relief for industry players like TAFE.
In the early system, a separate child
The tractor parts were classified, attracting a total of 12 vehicles. 5 % (Cenvat)and 5% (state VAT)
A total of 17. 5%.
However, under the GST, tractor parts are combined with auto parts that attract 28% GST.
The tractor manufacturers association said earlier that the proposed GST rate for tractor components was 28%, which would result in a 25,000 increase in input costs per tractor, affecting the industry\'s working capital?
On Friday, just hours before the official GST was launched, 1,600 crore, the GST Council announced a reduction in the GST rate for fertilizers from 12% to 5%, the tax rate for special parts for tractors has dropped from 28% to 18%.
This is a major relief to the agricultural community, which has been in trouble with multiple issues including outstanding loans and farmers\' suicides.
TAFE chairman Mallika srinetti said the reduction of the GST for tractor parts from 28% to 18% reflects the previous
The GST income neutral tariff will greatly ease the pressure on the agricultural community and ensure that the cost of farmers will not increase from before GST.
TR Kesavan, chairman of the technical committee, said that this reduction will greatly help small and medium-sized farmers to make profits when farm profitability becomes critical.
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