Gadkari asks to reduce GST on flex-fuel vehicles to 12%
ECONOMY & POLICY

Gadkari asks to reduce GST on flex-fuel vehicles to 12%

Union Minister Nitin Gadkari suggested on Monday that state finance ministers should consider reducing the Goods and Services Tax (GST) on flex-fuel vehicles to 12% during the GST Council meeting. While addressing the India Bio-Energy & Tech Expo organized by IFGE, Gadkari emphasized the importance of reducing fossil fuel imports and promoting the use of biofuels.

He mentioned that support is needed from the finance ministers of various states and added that the Union Finance Minister had assured him they would work to persuade all the state finance ministers. He noted that he had requested Maharashtra's Finance Minister to attend the GST Council meeting and propose the reduction of GST on flex-fuel engine cars and scooters.

Flex-fuel-compatible vehicles can operate on more than one type of fuel, typically a blend of petrol and ethanol or methanol. Gadkari also shared that he had asked Uttar Pradesh Chief Minister Yogi Adityanath to consider reducing taxes on flex-fuel vehicles.

In a separate meeting with Maharashtra Finance Minister Ajit Pawar, Gadkari suggested that Pawar attend a GST meeting with Union Finance Minister Nirmala Sitharaman to discuss the matter. Currently, vehicles powered by internal combustion engines, including hybrids, are subject to a 28% GST, while electric vehicles are taxed at 5%.

Gadkari pointed out that India imports fossil fuels worth up to Rs 22 trillion annually, which poses not only an air pollution challenge but also an economic issue. He expressed confidence that reducing fossil fuel imports and promoting biofuel would significantly benefit the agriculture sector. Gadkari also mentioned that the cost of biofuel in India is lower and produces no pollution, which would be advantageous for the general public.

The minister highlighted the importance of the automobile industry to the Indian economy, noting that it currently generates 4.5 crore jobs and contributes the highest GST revenue to both state and central governments. He also stated that two-wheeler manufacturers like Hero and Bajaj export 50% of the bikes they produce in India, and if better technology for biofuels is developed, exports could increase by an additional 10 to 20%, as pollution is a major concern worldwide.

Regarding the road sector, Gadkari noted that India is continuing to expand the length of its National Highways.

Union Minister Nitin Gadkari suggested on Monday that state finance ministers should consider reducing the Goods and Services Tax (GST) on flex-fuel vehicles to 12% during the GST Council meeting. While addressing the India Bio-Energy & Tech Expo organized by IFGE, Gadkari emphasized the importance of reducing fossil fuel imports and promoting the use of biofuels. He mentioned that support is needed from the finance ministers of various states and added that the Union Finance Minister had assured him they would work to persuade all the state finance ministers. He noted that he had requested Maharashtra's Finance Minister to attend the GST Council meeting and propose the reduction of GST on flex-fuel engine cars and scooters. Flex-fuel-compatible vehicles can operate on more than one type of fuel, typically a blend of petrol and ethanol or methanol. Gadkari also shared that he had asked Uttar Pradesh Chief Minister Yogi Adityanath to consider reducing taxes on flex-fuel vehicles. In a separate meeting with Maharashtra Finance Minister Ajit Pawar, Gadkari suggested that Pawar attend a GST meeting with Union Finance Minister Nirmala Sitharaman to discuss the matter. Currently, vehicles powered by internal combustion engines, including hybrids, are subject to a 28% GST, while electric vehicles are taxed at 5%. Gadkari pointed out that India imports fossil fuels worth up to Rs 22 trillion annually, which poses not only an air pollution challenge but also an economic issue. He expressed confidence that reducing fossil fuel imports and promoting biofuel would significantly benefit the agriculture sector. Gadkari also mentioned that the cost of biofuel in India is lower and produces no pollution, which would be advantageous for the general public. The minister highlighted the importance of the automobile industry to the Indian economy, noting that it currently generates 4.5 crore jobs and contributes the highest GST revenue to both state and central governments. He also stated that two-wheeler manufacturers like Hero and Bajaj export 50% of the bikes they produce in India, and if better technology for biofuels is developed, exports could increase by an additional 10 to 20%, as pollution is a major concern worldwide. Regarding the road sector, Gadkari noted that India is continuing to expand the length of its National Highways.

Next Story
Infrastructure Urban

3i Infotech Reports Rs 7.25 Bn Revenue for FY25

3i Infotech, a leading provider of digital transformation, technology services and technology solutions, announced its consolidated financial results for the fourth quarter and full year FY25, ended on March 31st, 2025. The company maintained its growth momentum, displaying consistent progress for the 3rd consecutive quarter.In Q4 FY25, 3i Infotech reported revenue of Rs 1.87 billion, reflecting steady performance compared to Rs 1.81 billion in Q3 FY25 and Rs 1.97 billion in Q4 FY24. The company delivered strong profitability improvements, with gross margin growing by 14.8 per cent Q-o-Q and 1..

Next Story
Infrastructure Urban

Emerald Finance Joins Baya PTE to Boost SME Bill Discounting

Emerald Finance is a dynamic company offering a spectrum of financial products and services including its flagship Earned Wage Access (EWA) in India, has entered into a strategic partnership with Singapore-based Baya PTE through its Indian subsidiary. This collaboration aims to strengthen bill discounting services for Small and Medium Enterprises (SMEs), enabling faster access to working capital and improved cash flow management.The initiative is designed to support SMEs that supply to large corporates such as JSW Steel, Delhivery, and PVR INOX, among others. By facilitating timely invoice dis..

Next Story
Infrastructure Urban

BLS E-Services Crosses Rs 5 Bn Revenue Mark in FY25

BLS E-Services, a technology-enabled digital service provider, announced its audited consolidated financial results for the quarter and full year period ended 31 March 2025.Speaking about the performance and recent updates, Shikhar Aggarwal, Chairman, BLS E- Services said, “We are delighted to report a remarkable performance in FY25, as we achieved several milestones during the fiscal year. FY25 marked our highest-ever financial performance, as we surpassed Rs 5 billion milestone in Total Income during the year, which was reported at Rs 5.45 billion, a notable YoY growth of 76 per cent. The ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?