The Indian Auto LPG Coalition (IAC) wants a GST (goods and service tax) reduction on Autogas, as well as on conversion kits for gaseous fuels to promote the adoption of clean alternative fuels. Autogas is currently taxed at 18% GST. Also, the GST rates on LPG/CNG conversion kits stand at a prohibitive 28%.

High GST rates on clean fuels and conversions kits are in complete variance to the government’s stated green mobility push, according to the IAC.

“We seek the attention of the Finance Minister towards the imminent need for devising policies to allow for the rapid growth of environment-friendly vehicle fuels, such as Autogas. It is being promoted actively by governments across the world, but is facing discriminatory policies in India. It is taxed at a high GST slab of 18%. Similarly, conversion kits are placed at the highest slab of 28% which is meant for either luxury goods or demerit items like tobacco products,” said Suyash Gupta, Director General, Indian Auto LPG Coalition.

The association said even as India plans a long-term shift to electric vehicles, it is missing out the environmental benefits that can be gained by adopting low hanging fruits like LPG. Investing in a wider basket of clean alternative transport fuels that are more readily available can bring about an immediate improvement in air quality unlike EVs that are still a decade away from becoming commercially viable.

The global consumption of Autogas has risen by over 40% over the past 10 years, fuelled by environmental concerns. Among the key nations that have successfully adopted this green fuel for their transportation requirements are South Korea, Turkey, Poland, Japan, Australia, and Italy. For more information, please visit this link.

5 February 2020