A reduction in the goods and services tax (GST) rate on tractors, coupled with festive demand, drove monthly sales to an all-time high in September.

Data from the Tractor and Mechanization Association (TMA), the industry’s apex body, showed that a little over 146,000 tractors were sold in the domestic market last month, surpassing the previous best of 144,675 units recorded in October 2024.

Under the latest reform, effective September 22, GST on tractors was slashed to the lowest slab of 5% from 12%. The tax on road tractors with engine capacity above 1,800cc—mainly used for hauling farm goods—was also reduced to 18% from 28%.

The surge in September volumes has lifted year-to-date growth for the segment. Between January and September, 761,450 tractors were sold, a 20% rise over the

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