GST Reforms Make Waste Management And Green Mobility Affordable

28 Mar 2026 CW Team

The reduction in GST from 12 per cent to five per cent for services to common effluent treatment plants (CETPs) is aimed at making collective industrial wastewater treatment more attractive to small and medium enterprises. There are 222 operational CETPs treating 2,212 million litres per day across 21 states and the tax change is estimated to save industry about Rs132.7 mn per day. 53 plants are implementing zero liquid discharge systems, supporting reuse of treated wastewater and reduced freshwater dependency.

GST on biodegradable carry bags has been cut from 18 per cent to five per cent to reinforce the ban on identified single use plastics and make compostable alternatives more affordable. The sale price of compostable bags is expected to fall from Rs200/kg to Rs178/kg, a drop of approximately 11 per cent, which should help over 200 certified manufacturers scale production of starch based materials. Lower prices are expected to support coastal and riverine clean up efforts by reducing plastic leakage into marine ecosystems.

The cut in GST from 28 per cent to 18 per cent for buses and commercial goods vehicles is intended to encourage fleet modernisation and replacement of older vehicles with Bharat Stage VI compliant models that are up to 10 times cleaner. Reduced acquisition costs are expected to enable deployment of more buses by public and private operators, improve last mile and intercity connectivity and lower logistics costs for businesses. Collectively, the reforms are presented as reinforcing India’s role in the global response to climate change by lowering barriers to sustainable industry practices and cleaner urban transport.

The government has enacted goods and services tax reforms to make waste management, biodegradable products and green mobility more affordable across India. The changes are intended to accelerate eco friendly manufacturing, strengthen waste treatment infrastructure and promote sustainable mobility in alignment with Viksit Bharat 2047, the LiFE movement and India’s Net Zero 2070 commitments. The measures aim to lower upfront costs for industry and urban operators while encouraging circular economy practices. The reduction in GST from 12 per cent to five per cent for services to common effluent treatment plants (CETPs) is aimed at making collective industrial wastewater treatment more attractive to small and medium enterprises. There are 222 operational CETPs treating 2,212 million litres per day across 21 states and the tax change is estimated to save industry about Rs132.7 mn per day. 53 plants are implementing zero liquid discharge systems, supporting reuse of treated wastewater and reduced freshwater dependency. GST on biodegradable carry bags has been cut from 18 per cent to five per cent to reinforce the ban on identified single use plastics and make compostable alternatives more affordable. The sale price of compostable bags is expected to fall from Rs200/kg to Rs178/kg, a drop of approximately 11 per cent, which should help over 200 certified manufacturers scale production of starch based materials. Lower prices are expected to support coastal and riverine clean up efforts by reducing plastic leakage into marine ecosystems. The cut in GST from 28 per cent to 18 per cent for buses and commercial goods vehicles is intended to encourage fleet modernisation and replacement of older vehicles with Bharat Stage VI compliant models that are up to 10 times cleaner. Reduced acquisition costs are expected to enable deployment of more buses by public and private operators, improve last mile and intercity connectivity and lower logistics costs for businesses. Collectively, the reforms are presented as reinforcing India’s role in the global response to climate change by lowering barriers to sustainable industry practices and cleaner urban transport.

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