The Ministry of Heavy Industries is actively considering requests for a reduction in the Goods and Services Tax ( GST ) on Flexible Fuel Vehicles ( FFVs ) from the existing 28 percent, according to insider sources, as reported by NDTV.
In ongoing consultations with various stakeholders and government departments, the ministry is diligently assessing the feedback received. Once these consultations conclude, the ministry intends to present a formal recommendation to its finance counterpart. Subsequently, the GST Council will deliberate on the matter and make a decision, as disclosed by a senior official.
“We have received multiple representations advocating for a reduction in GST on flex fuel vehicles. Our meetings are aimed at gauging the perspectives of diverse stakeholders and different ministries. However, opinions are varied. Some argue that reducing GST and cess on FFVs is essential, given the government’s push for their adoption. Presently, FFVs incur a GST rate of 28 percent along with a 15 percent cess,” stated the official.
The official, who requested anonymity, revealed, “We have been tasked with reviewing the necessity of a GST reduction on FFVs.”
Flexible fuel is an eco-friendly alternative composed of a blend of petrol and methanol or ethanol. FFVs are equipped with internal combustion engines designed to operate on multiple fuel types.
The ongoing discussions and reviews aim to determine the viability of adjusting the GST structure for FFVs, aligning with the government’s promotion of environmentally conscious transportation.
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