Gadkari seeks 5% GST on crude ethanol to push flex-fuel cars, warns against petrol parity
As the Centre and states gear up for a major overhaul of India's Goods and Services Tax (GST) framework, Union Road Transport Minister
Nitin Gadkari
has called for a reduction in the
GST
rate on crude ethanol—from the current 18% to 5%—in a bid to support the production and adoption of
flex-fuel vehicles
, according to a report by ToI.
At present, ethanol that is used under the Ethanol Blended
Petrol
(EBP) Programme attracts a concessional GST rate of 5%. However, crude ethanol continues to be taxed at the higher rate of 18%. A source told TNN that
Gadkari
has urged for parity between the two, cautioning that taxing crude ethanol at such a high rate could discourage people from opting for vehicles that run entirely on ethanol.
"Why will people go for these vehicles if the price of crude ethanol is equal to or more than that of petrol?" the source quoted Gadkari as saying.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
The Top 25 Most Beautiful Women In The World
Articles Vally
Undo
Although over 400 fuel outlets in the country currently offer 100% ethanol, consumer interest remains weak. Gadkari believes this trend can be reversed if a more favourable tax policy is introduced for crude ethanol.
Gadkari's appeal comes as the Union government is in the process of re-evaluating the GST structure. Finance Minister
Nirmala Sitharaman
and a team of officials are reviewing various rationalisation proposals ahead of detailed consultations with states. The larger exercise aims to streamline the GST regime, enhance revenue efficiency, and address classification issues that have emerged since the tax was introduced in 2017.
Live Events
Earlier attempts to bring about change through two separate Groups of Ministers (GoMs) did not yield any actionable consensus. A third GoM is now studying the issue of cesses, particularly the compensation cess, which is set to lapse in March next year.
India's GST structure currently features four primary tax slabs: 5%, 12%, 18%, and 28%. While the majority of items fall under the 5% bracket, most of the revenue is generated from the 18% slab. Industry bodies have long been pressing for a simplification of this framework, especially a merger of the 12% and 18% slabs into a single rate of 15–16%. However, such a move may lead to revenue losses and face political opposition from states.
Gadkari's proposal to lower
GST on crude ethanol
aligns with the country's wider energy and transport objectives, including reducing reliance on imported oil and encouraging the use of
alternative fuels
. It is still uncertain whether this suggestion will be included in the final set of GST reforms currently under consideration.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
28 minutes ago
- Time of India
Look beyond Maharashtra Kesari, aim for Olympic medals: CM Fadnavis to state wrestlers
1 2 3 4 Nagpur: Chief Minister Devendra Fadnavis wanted the Maharashtra Kesari wrestlers to aim higher and bring the glory of legendary Khashaba Jadhav back to the state by winning a medal in the next Olympic Games. Fadnavis was speaking during the inauguration of the Chief Minister's Cup U-15 National Wrestling Championship, which began at the indoor stadium of Divisional Sports Complex in Mankapur on Saturday. On a query raised by Wrestling Federation of India (WFI) President Sanjay Kumar Singh regarding the performance of senior Maharashtra grapplers compared to their junior counterparts, Fadnavis said that state wrestlers get satisfied after becoming Maharashtra Kesari. Fadnavis wanted the state wrestlers to change that mindset and remained hopeful that in the next Olympic Games, Maharashtra grapplers will win medals for the country. He said that the state govt is committed to bringing international coaches for excellent training and updating necessary infrastructure to fully support the wrestlers. Fadnavis said, "Efforts will be made to involve institutions, foundations, and the corporate sector to make wrestling more professional and glamorous in Maharashtra. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Đăng ký Undo Like kabaddi, wrestling is played across all the small regions of Maharashtra, and it is time to show the world our true value." Speaking further, he emphasised the govt's focus on wrestling competitions and highlighted the importance of sports and participation. Fadnavis said Maharashtra's young sportspersons were performing well at the National Games and Khelo India. As far as wrestling is concerned, the junior wrestlers are doing well. But the senior wrestlers are not getting recognition at the international level. Fadnavis wanted the state wrestling association to look into the matter and take all the necessary help from the Maharashtra govt. In his introductory remark, President of the Organising Committee and MLC Sandip Joshi said, "Looking at the success of Nagpur's first national championship, the city is all set and ready to host international wrestling competition." Joshi also asked the CM's approval to build a small multi-sport stadium on the municipal corporation land near Manish Nagar. President of Maharashtra Wrestling Association Ramdas Tadas said that in 2026, Wardha will host the senior national wrestling championship. Minister of state for finance and planning Ashish Jaiswal, President of WFI Sanjay Kumar Singh, former MP Tadas, MLC Kripal Tumare, Working President Sandip Bhondwe, state minister Pankaj Bhoyar, President of Vidarbha Wrestling Association Sanjay Tirathkar, Hindkesri Yogesh Dhoke, Municipal Commissioner Dr Abhijit Choudhary, and others shared the dais. Earlier the members of Amit Yoga Group won the hearts of the audience by presenting thrilling yoga demonstrations. Fadnavis appreciated the performance on the occasion of International Yoga Day.
Time of India
43 minutes ago
- Time of India
CM flying squad to probe MCM sanitation contract
Gurgaon: The CM flying squad has initiated an investigation into MCM's sanitation contract with Akanksha Enterprises, demanding documents such as tender details, contractor payments, and supervision records. The probe follows MCM's recent Rs 9.2 crore penalty on the contractor for inadequate service delivery. The contract, initially valid till Feb 2025, was extended to May. "A letter was sent to the MCM officials seeking details of the contract so that the CM flying squad could probe the matter. The civic body was given a week's time to probe the matter," said a ULB official privy to the matter. The contractor submitted an invoice of Rs 13.2 crore for services rendered during these three months. The representative of Akanksha Enterprises, Shishpal Rana, could not be reached despite repeated attempts by TOI. In April, the company also faced a Rs 4.3 crore penalty, during which they alleged bribery among senior MCM officials and payment delays, leading to the transfer of the then MCM commissioner. A sanitation standing committee reviewed the work of the agency between Feb 20, 2025, and May 19, 2025. A meeting was held on June 4 when the committee recommended deducting over Rs 9.17 crore from the agency's Rs 13.17 crore bill, approving only Rs 3.9 crore for payment. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với mức chênh lệch giá thấp nhất IC Markets Đăng ký Undo According to state govt-sanctioned estimates derived from central public health and environment engineering standards (SWM manual of CPPHEO norms, 20216) and the project's request for proposal (RFP), the agency was required to supply 1,997 personnel, 96 tractor trolleys, 468 rickshaw carts, and four earthmovers for sweeping roads in the MCM area. The urban local bodies (ULB) department stipulated that all SWM payments would be processed via the SWM monitoring portal starting Jan 2025. The committee observed a significant gap between the actual deployment figures shown on the SWM portal. It revealed personnel shortfalls of 1,315 in Feb, 1,355 in March, 1,533 in April, and 1,284 in May. Regarding equipment deployment, the committee's review showed that the agency provided only 101 rickshaw carts instead of the required 468 and merely 38 tractor trolleys against the specified 94, indicating substantial shortages in equipment provision for their work in the MCM area for three months.
Time of India
43 minutes ago
- Time of India
1.6L water projects helping state ‘catch the rain'
Lucknow: The 'Catch The Rain 2025' campaign to promote water conservation in the state saw over 1.66 lakh projects launched between Mar 22 and Jun 13, including rainwater harvesting projects, rejuvenation of traditional water sources and massive afforestation efforts. A govt spokesperson said 17,557 projects related to rainwater harvesting were completed, while 16,561 were in progress. Under MGNREGA, 5,714 traditional water body revival works were completed and 5,093 were ongoing. In the same period, 3,825 soak pit and stabilisation pond projects were completed, with another 512 underway. Watershed development saw 66,135 completed works and 52,097 in progress. In addition to this, 20,922 intensive afforestation works were executed, with 23,089 more currently underway. "The Krishi Vigyan Kendras successfully conducted 228 awareness and training programmes, educating farmers, students, rural women and youth on water management techniques. These activities were implemented by the departments of agriculture and horticulture," the official said. Lucknow: The 'Catch The Rain 2025' campaign to promote water conservation in the state saw over 1.66 lakh projects launched between Mar 22 and Jun 13, including rainwater harvesting projects, rejuvenation of traditional water sources and massive afforestation efforts. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với mức chênh lệch giá thấp nhất IC Markets Đăng ký Undo A govt spokesperson said 17,557 projects related to rainwater harvesting were completed, while 16,561 were in progress. Under MGNREGA, 5,714 traditional water body revival works were completed and 5,093 were ongoing. In the same period, 3,825 soak pit and stabilisation pond projects were completed, with another 512 underway. Watershed development saw 66,135 completed works and 52,097 in progress. In addition to this, 20,922 intensive afforestation works were executed, with 23,089 more currently underway. "The Krishi Vigyan Kendras successfully conducted 228 awareness and training programmes, educating farmers, students, rural women and youth on water management techniques. These activities were implemented by the departments of agriculture and horticulture," the official said.
