Nitin Gadkari asks state FMs to assess cutting GST on flex fuel vehicles to 12%: PTI

Nitin Gadkari noted on 2 September 2024, that state finance ministers must assess cutting GST on flex fuel vehicles to 12%, in a GST Council Meeting, PTI reported. 

At the IFGE's India Bio & Tech Expo, the Road Transport and Highways minister also emphasised the need for curbing imports of fossil fuels, encouraging usage of biofuel, PTI reported. 

"We need support from finance ministers of different states. The (Union) finance minister assured me that we will try to convince all the finance ministers." 

He added that he had asked Maharashtra's Finance Minister to attend the GST Council meeting and propose reduction of GST on flex fuel engine cars and scooters, PTI noted. 

The publication further added that Gadkari had asked UP CM Yogi Adityanath to mull reducing taxes on flex fuel vehicles. 

In an unrelated meeting with Maharashtra FM Ajit Pawar, Gadkari suggested that he attend a meeting on GST with Nirmala Sitharaman on this subject, PTI reported. 

At the moment, a 28% GST is levied on ICE vehicles, including hybrids, and 5% on electric vehicles. 

Gadkari also noted that each year, the country imports fossil fuel up to Rs 22 lakh crore, citing it as not only a pollution problem, but an economic one as well, PTI said. 

He further noted that curtailing fossil fuel imports and augmenting the use of fossil fuel, agriculture would be the most important beneficiary, PTI noted. 

Stressing the importance of the automobile industry, he said that it generates 4.5 crore jobs. "This is the industry which is giving maximum GST to the state and central government." 

He also noted that Hero and Bajaj export half of their bikes they make in India, and if they can have good technology, exports can further by 10-20%, because "in the whole world now, pollution is a big concern." 

Gadkari further noted that as far as the road sector was concerned, India was increasing the length of National Highways.