The tractor hsn code is 8701, and GST on tractors is 5% after the reform, down from 12%. The only tractors outside the 5% rate are road tractors for semi-trailers with engines above 1800 cc, which are 18%.
Listed tractor parts, tractor tyres and tubes, hydraulic pumps for tractors, agricultural trailers and farm machinery such as rotavators and harvesters are also 5%. The codes, a sample dealer bill and the parts left out of the 5% list are set out below. Machinery is on the machinery page.
Tractors: codes and GST rates
Item / HSN / GST- Agricultural tractors5%Except large road tractors
- Road tractors for semi-trailers above 1800 cc18%Haulage tractors
- Tractor parts listed in the entry5%Rims, housings, gear boxes, radiators and more
- Tractor tyres and tubes5%Specific entries
- Hydraulic pumps for tractors5%Specific entry
- Self-loading trailers for agriculture5%Farm trailers
- Other trailers18%Not agricultural
- Rotavators, cultivators, ploughs5%Soil preparation machinery
- Harvesters and threshers5%Harvesting machinery
- Tractor servicing18%SAC 998714
Quick facts
HSN heading
8701: tractorsGST rate
5% (2.5% CGST + 2.5% SGST)Rate before the reform
12%Large road tractors
18%Digits to print
4 digits up to Rs 5 crore turnover, 6 aboveFarm machinery
8432 to 8436 at 5%
Tractor hsn code and gst rate table
| Item | HSN | GST |
|---|---|---|
| Agricultural tractor | 8701 | 5% |
| Power tiller | 8701 10 | 5% |
| Road tractor above 1800 cc | 8701 20 | 18% |
| Tractor rear wheel rim, centre housing, gear box | 8708 | 5% |
| Tractor brakes, transaxles, radiators, silencers | 8708 | 5% |
| Tractor tyres and tubes | 4011 70, 4013 90 49 | 5% |
| Hydraulic pump for tractor | 8413 81 90 | 5% |
| Agricultural trailer, self loading | 8716 20 | 5% |
| Rotavator, cultivator, plough, harrow | 8432 | 5% |
| Combine harvester, thresher | 8433 | 5% |
| Tractor engine oil | 2710 | 18% |
Tractor parts hsn code
Schedule I lists specific tractor parts at 5%, including rear wheel rims, centre housings, housing transmission, bumpers, brake assemblies, gear boxes, transaxles, road wheels, radiator assemblies, cooling systems, silencers, clutch assemblies, steering systems and hydraulic and fuel pumps for tractors. Parts not named in the entry, and general parts that fit many vehicles, follow their own headings, usually at 18%. See auto parts.
Tractor tyres
Every tractor tyre and tube is on the 5% list. Truck and car tyres are 18%. See tyres.
Tractor dealer's invoice
Tractor dealer to a farmer: 45 horsepower tractor, HSN 8701 92, 1 piece, taxable value Rs 6,50,000. CGST 2.5% Rs 16,250. SGST 2.5% Rs 16,250. Total Rs 6,82,500.
Before the reform, the same tractor carried 12%, Rs 78,000 of tax; now it carries Rs 32,500.
Tractor gst rate and the reform
Tractors were 12% before 22 September and moved to 5%. Many tractor parts listed in Schedule I also moved from 12% or 18% to 5%. Tractor makers buy steel, engines and components at 18% and sell tractors at 5%, so they often build up credit, which may be refunded under the inverted duty rules on conditions. Dealers buying at 5% and selling at 5% have matched rates.
Tractor hsn code for power tillers and loaders
Power tillers are 8701 10 at 5%. Tractor mounted loaders, dozers and backhoes used in construction may be classified as construction machinery under 8429 or 8430 at 18%. A tractor sold with a loader attachment for construction use needs a careful look.
Implements and attachments
Rotavators, cultivators, ploughs, harrows and seed drills are soil preparation machinery under 8432 at 5%. Harvesters and threshers are 8433 at 5%. Sprayers for farms are 8424 at 5%. See machinery.
Tractor servicing and lubricants
A tractor service or repair job is billed under SAC 998714 at 18%. Engine oil and greases are 2710 at 18%; see engine oil. Farmers cannot claim credit, since most are not registered, so these are costs.
Tractor dealers should use this page as an overview only. The list of 5% tractor parts is specific, so check the entry on the GST portal and ask a GST practitioner or chartered accountant before billing a part at 5%.
Frequently asked questions
What GST rate applies to tractors?
Agricultural tractors are 5% since the reform, down from 12%.
What is the tractor hsn code?
Tractors are 8701.
What is the GST on tractor parts?
Parts listed in the Schedule I entry are 5%. Other parts usually follow their own headings at 18%.
How are tractor tyres taxed?
Tractor tyres and tubes are 5%.
Are road tractors also 5%?
No. Road tractors for semi-trailers above 1800 cc are 18%.