Tractor tyres GST cut to 5% in 2025: How much will you save?

The GST on tractor tyres has been lowered to 5% in 2025, which is a big relief for Indian farmers. This change was made after recent GST revisions and decisions made at the GST Council meeting. Tractor tyres are a critical input in agriculture, and this modification is likely to cut operating costs, improve rural demand, and assist agricultural modernisation. But how much will you actually save? Let’s break it down.

GST on Tractor Tyres: Before vs After 2025

Before 2025, the tractor tyre GST rate was aligned with the general tyre GST category.

• Earlier GST rate: 18%
• New GST rate (2025): 5% applicable GST on tractor tyres, tractor tyre tubes, and pneumatic tyres used in agriculture

This change applies specifically to tractor tyres, including rear tractor tyres and tubes, and excludes categories like solid tyres meant for industrial use.

How Much Will You Save?

Let’s understand savings with simple examples (prices include GST):

• Earlier price (18% GST): Base price ₹10,000 → GST ₹1,800 → Total ₹11,800
• New price (5% GST): Base price ₹10,000 → GST ₹500 → Total ₹10,500

Saving per tyre: ₹1,300

For two rear tractor tyres, farmers can save ₹2,600, which is significant, especially for small and marginal farmers.

Impact on Farmers and Agricultural Costs

The reduced tractor tyre GST rate directly lowers maintenance expenses. Benefits include:

• Reduced overall tractor ownership cost
• More frequent tyre replacement improves efficiency
• Lower burden during peak agricultural seasons

This also makes premium options like Apollo tyres more affordable, helping farmers choose which tractor tyre is best for their soil and crop conditions.

Impact on Tyre Dealers and Manufacturers

For dealers and manufacturers:

• Increased demand due to lower prices
• Higher turnover volume
• Reduced tax complexity for agriculture-specific products

Manufacturers dealing in pneumatic tyres, retreaded tyres, tractor tyres and tubes will likely see growth, even if margins remain stable.

Government’s Objective Behind Reducing GST on Tractor Tyres

The primary goals behind cutting the GST rate on tractor tyres include:

• Supporting farmers and the rural economy
• Reducing agricultural input costs
• Encouraging mechanisation without increasing tractor tax
• Aligning GST rates with the essential nature of farm equipment

This move fits well within broader GST reforms focused on essential goods.

Tractor Tyres vs Other Tyres: GST Rate Comparison

Tyre Type	GST Rate
Tractor tyres	5%
Tractor tyres & tubes	5%
Passenger vehicle tyres	18%
Commercial vehicle tyres	18%
Solid tyres	18%
Retreaded tyres	12%

This clearly shows the preferential treatment given to agricultural tyres.

Will GST Savings Be Passed on to Consumers?

In most cases, yes. Since GST is an inclusive GST tax collected at the point of sale, lower rates directly reduce invoice prices. Market competition among brands and dealers further ensures that most GST savings are passed on to farmers.

Best Time to Buy Tractor Tyres in 2025

The best time to buy is after the GST rate implementation stabilises, especially before sowing seasons when dealers offer discounts on rear tractor tyres and tyre tubes. Combining seasonal offers with a lower GST rate maximises savings.

Why Tractor Gyan Is the Right Platform for Tractor Tyre Information

Tractor Gyan is India’s most impactful agritech voice, providing accurate, farmer-focused information that helps rural India make better decisions. The platform offers:

• Latest updates on tractor tyres GST rate
• Easy comparisons to help farmers decide which tractor tyre is best
• Timely news and insights from GST Council meetings
• Trusted guides on tractor tyres, tubes, and tractor tax

If you are looking for clear, practical, and reliable information on tractor tyres, GST rates, and smart buying decisions, Tractor Gyan remains a dependable choice for every farmer.

Conclusion:

The GST cut on tractor tyres to 5% in 2025 is a farmer-friendly reform that reduces costs, improves access to quality tyres, and strengthens India’s agricultural ecosystem.