Gadkari asks state FMs to consider reducing GST on flex-fuel vehicles

As India aims to bring down its fossil fuel consumption, Union minister for road transport and highways Nitin Gadkari on Monday asked finance ministers of different states to propose a reduction of Goods and Services Tax (GST) on flex-fuel vehicles at the next GST Council meeting.

“In the GST Council, we need support from finance ministers of different states. Recently, I spoke to the finance minister of Maharashtra (Ajit Pawar), and I asked him to put up a proposal to reduce the GST on flex-fuel cars, scooters, etc. to up to 12 per cent,” the minister said at the India Bio-Energy & Tech Expo, organised by IFGE, in New Delhi.

Among others, the sugar industry has been seeking a 5 per cent GST on flex-fuel vehicles, as is the case for electric vehicles. Currently, flex-fuel vehicles attract a GST of 28 per cent, which is uniform across two and four-wheelers.