GST applicability for agricultural machinery

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This discussion clarifies the Goods and Services Tax (GST) applicability for agricultural machinery powered by animals, with no electricity involved. According to GST law, specifically under HSN chapter 8201 for animal-driven agricultural implements, the applicable GST rate is nil. Therefore, no GST is payable on such machinery.

Jyothsna

Jyothsna (Querist)
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06 August 2020 Dear sir/ma'am,
Whether GST is applicable if we manufacture machinery which is used for agricultural purposes which is driven by animals,there is no use of electricity in running the machine

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 August 2020 GST tax on Agricultural implements animal driven under HSN chapter 8201

As per GST Law, there is no GST payable on Agricultural implements animal driven.

So the rate of GST payable on Agricultural implements animal driven is nil rate.