Centre announces GST reforms 2025 with major cuts for farmers, cooperatives and food sector

Hyderabad: The Centre on Friday unveiled GST reforms 2025, announcing sweeping rate cuts for dairy, food processing, farm inputs, and transport. Officials said the measures would benefit more than 10 crore dairy farmers, strengthen cooperatives, and reduce household spending on essentials.

Milk and paneer now fall outside the GST net. Tax on butter, ghee, and similar products dropped from 12% to 5%. Milk cans made of iron, steel, or aluminium will also attract 5% GST instead of 12%.

GST reforms 2025 bring sweeping relief across rural economy

Food processing saw wide relief. Cheese, namkeens, butter, and pasta now carry 5% GST. Chocolates, corn flakes, pastries, cakes, biscuits, coffee, and ice cream moved down from 18% to 5%. Jams, jellies, fruit-pulp drinks, yeast, and bhujia also fall under the 5% slab.

Farmers will pay less for key items. Tractors below 1,800 cc now attract 5% GST, with tyres, tubes, and hydraulic pumps taxed at the same rate. Fertiliser inputs like ammonia, sulphuric acid, and nitric acid shifted from 18% to 5%, cutting input costs.

Bio-pesticides and micronutrients are also at 5%, encouraging natural farming. Trucks and goods vehicles moved down from 28% to 18%. Third-party insurance for goods carriage now carries 5% GST with input tax credit benefits.

Officials stressed that the reforms would make farm produce more competitive, reduce logistics costs, promote sustainable practices, and strengthen women-led rural cooperatives.