BKT Takes Stock of GST Cut on Tractor Tyres: An Incentive to Farm Mechanisation
Balkrishna
Industries Ltd. (BKT), a global leader in Off-Highway tyre manufacturing and a
trusted partner to India’s agriculture sector, has been enabling farm
mechanisation and rural growth through its advanced tractor and agri-tyre
solutions. With agriculture employing nearly 45% of the workforce and
contributing around 18% to GDP, affordable and reliable farm mechanization
remains critical to driving productivity and rural growth.
With
a consolidated leading presence in the global agricultural sector, BKT takes
stock of the GST Council’s decision to rationalize tax rates in the tyre
industry. The revised GST structure will be implemented across BKT’s product
range effective 22nd September 2025.
Product Category Previous
GST Rate Revised GST Rate
Tractor
Tyres & Tubes 18% 5%
Other
Tyres (Non-tractor) 28% 18%
Other
Tubes (Non-tractor) 28% 18%
Flaps No
change No
change
The consequences for the agriculture sector
The
sharp reduction in GST on tractor tyres and tubes (from 18% to 5%) will
directly reduce input costs for farmers, thus making mechanization more
affordable and accelerating the shift towards modern farming practices.
GST
rationalization will have an impact in terms of reduction of the overall tax
burden on tyres and tubes. Also, it will improve pricing competitiveness across
agriculture, infrastructure, and transport sectors, encouraging demand and
formalization of the tyre industry.
This
choice confirms BKT commitment to passing on the benefit of these changes to
its customers and partners, ensuring more affordable solutions and greater
satisfaction across its ecosystem, while demonstrating company’s strong focus
on end-users and stakeholders. Most importantly, by making mechanization more
accessible to farmers, BKT reinforces its promise of shared progress, staying
true to its philosophy of Growing Together.”
