Tractor makers rally as GST cut boosts farm sentiment
(10:31, 04 Sep 2025)
Mahindra & Mahindra soared 6.06% and Escorts Kubota surged 5.46% following the announcement.

The Council reduced GST on tractors (except road tractors for semi-trailers above 1800cc) to 5% from 12%. For road tractors with engines above 1800cc, the tax was lowered to 18% from 28%. Additionally, GST on tractor tyres and parts was slashed from 18% to 5%.

The move is expected to lower ownership costs at a time when farmers are battling higher input expenses. The cut will particularly benefit small and marginal farmers, boosting rural demand and driving growth in farm mechanisation.

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