Cheaper milk, tractors and trucks as GST reforms 2025 slash tax rates
Hyderabad: The Centre’s GST reforms 2025 have brought sweeping tax relief for households and farmers. Milk and paneer are now fully exempt, while butter and ghee face only 5% GST.
Food products such as cheese, namkeens, pasta, jams, jellies, chocolates, cornflakes, biscuits, cakes and coffee all saw tax rates slashed to 5%. Silverware items like packing paper and crates also dropped to 5%, reducing costs for cooperatives.
GST reforms 2025 bring relief to both kitchens and farmlands
For farmers, tractors below 1,800 cc now attract only 5% GST. Tyres, tubes and farm parts also shifted to 5%, making mechanisation cheaper. Fertiliser inputs such as ammonia and acids, earlier taxed at 18%, are now at 5%, ensuring affordable supply during sowing season.
Bio-pesticides and micronutrients at 5% will make sustainable farming more viable. In logistics, GST on commercial trucks dropped from 28% to 18%, with insurance cut to 5%, lowering freight costs and improving supply chain efficiency.
The reforms are expected to directly benefit cooperatives, small farmers, food processors and consumers, ensuring lower household expenses and higher farmer incomes.
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