Sep 05, 2025

GST on Dairy Machinery Revised in the Recent 56th GST Council Meeting?

If you are a dairy farmer, supplier, or dealer of dairy equipment, you may be wondering whether the GST rate on milking machines and dairy-farm machinery (HSN 8434) has changed after the latest GST Council meeting held on September 4, 2025. Here’s a clear update.

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GST on Dairy Machinery : No Change

The good news is that there has been no revision in the GST rate for dairy machinery. Milking machines and equipment under HSN 8434 continue to attract 18% GST (9% CGST + 9% SGST or 18% IGST).

This rate was already cited by multiple tax advisory platforms such as ClearTax and Busy.in, as well as the official GST Council schedule. The 56th GST Council meeting did not bring any change to this category.

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What Did the GST Council Change Instead?

While dairy machinery remains at 18%, the Council announced rate adjustments in other areas, including:

Agricultural machinery and equipment: Reduced from 12% to 5% (includes tractors, harvesting machines, irrigation tools, and soil preparation machinery).
Dairy products: Some significant reductions were introduced—

1). UHT milk and paneer: Now GST-free.

2).Butter and cheese: Reduced to 5% from the earlier 12%.

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These changes focus more on consumer goods and farm-support equipment, not dairy processing or milking machinery.

GST Rate Comparison Table

Item / Category	Previous GST Rate	Revised Rate?	Notes
Milking machines & dairy machinery (HSN 8434)	18%	No change	Still at 18% as per authoritative sources.
Agricultural machinery & equipment	12%	Reduced to 5%	Includes tractors, irrigation machinery, and harvesting tools.
Dairy products (UHT milk, paneer, butter, cheese)	5%–12%	Reduced (0% or 5%)	UHT milk & paneer now GST-free; butter & cheese at 5%.

Final Answer

The GST rate on dairy machinery remains at 18%, with no change announced in the 56th GST Council meeting. Businesses dealing in milking machines, dairy equipment, and machinery under HSN 8434 should continue applying the 18% GST rate.

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For dairy farmers and equipment suppliers, this means the cost of dairy machinery remains unchanged, while there is some relief on agricultural equipment and dairy products.

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