Overview

• Union Agriculture Minister Shivraj Singh Chouhan directed farm machinery makers to reduce MRPs in line with the GST cut to 5%, with tractors set to be cheaper by Rs 41,000–63,000 and other equipment like paddy transplanters and threshers also seeing sizeable reductions.
• Industry bodies representing tractors, harvesters and power tillers pledged compliance, and the government said it will run awareness drives and monitor dealers so benefits reach farmers, including lower rentals at custom hiring centres.
• Suzuki Motorcycle India announced model-wise price cuts on scooters, motorcycles and spare parts from Sept. 22, passing on full GST 2.0 benefits and delivering customer savings of up to Rs 18,024.
• Analysts expect a demand lift across autos as GST on small cars and two-wheelers drops to 18% and SUVs move to a 40% band, with Motilal Oswal noting current discounts may shrink if sales accelerate during the festive season.
• FICCI analysis shows a larger share of urban household spending shifting into 0% and 5% slabs with some services like salons and gyms moving to 5% without input tax credit, while a LocalCircles survey highlights consumer scepticism about timely pass-through even as Crisil pegs the near-term revenue hit at about Rs 48,000 crore.