GST on Agriculture — Exemptions, Fertilisers & Tractors (2026)
Agriculture in India is broadly exempt from GST. Most fresh farm produce — vegetables, fruits, grains, milk, eggs — attract 0% GST. Agricultural inputs like fertilisers (5%), pesticides (18%), and tractors (12%) are taxable to keep production costs low.
Quick Reference
Fresh Vegetables/Fruits
0%
Fresh Milk/Eggs
0%
Fertilisers
5%
Tractors
12%
Pesticides
18%
GST Rate
0% / 5% / 12%
HSN 01–24 / 8701
Fresh Farm Produce — 0% (Exempt)
Fresh vegetables (unprocessed), fruits, grains (paddy, wheat, rice), pulses, fresh milk, eggs, fresh meat and fish — all attract 0% GST when sold in unprocessed form.
Processed/Packaged Agricultural Products
Branded and packaged food products attract GST: branded cereals and pulses 5%, branded paneer 5%, branded butter/ghee 12%, branded fruit juices 12%.
Fertilisers — 5%
Chemical fertilisers (urea, DAP, MOP, NPK) and organic fertilisers attract 5% GST. Seeds used for sowing are exempt.
Tractors and Agricultural Machinery — 12%
Tractors attract 12% GST (reduced from 18%). Other agricultural machinery — harvesters, cultivators, sprayers — also 12%. Irrigation equipment — varying rates.
Pesticides and Agrochemicals — 18%
Insecticides, pesticides, herbicides, and fungicides attract 18% GST. This is a point of discussion in the agricultural community as it raises input costs.
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No. Agricultural activities by a farmer (cultivator) are not considered a "supply" under GST. Farmers are not required to register for or pay GST on their produce.
No. Sale of unprocessed agricultural produce (paddy, wheat, vegetables) is exempt from GST. The mandi/APMC charges may attract GST separately.
Organic vegetables and fruits sold unprocessed are exempt. If branded and packaged, 5% GST applies.
Yes, if their turnover exceeds ₹20 lakh. Export of agricultural goods is zero-rated — you export without paying GST and can claim refund of ITC on inputs.
