Ministry of heavy industries, auto companies seek GST cut for CNG vehicles

New Delhi: Ahead of the budget, the ministry of heavy industries and auto companies have made a fresh pitch for concessions for CNG vehicles, once seen as a symbol of cleaner transport. One of the key demands is to slash GST on these vehicles from the current 28%, with auto industry representatives demanding that it should be comparable with electric vehicles, which attracts a 5% levy.
In recent months, govt has been quite categorical about its support for EVs and has refused to respond to demands from the powerful Japanese lobby to slash the tax on hybrids. Finance minister Nirmala Sitharaman has stayed clear of GST changes in the budget since it is an issue that is decided by the GST Council, which includes ministers from the states.
The demand, however, comes at a time when a group of ministers is looking at rationalising GST and is looking at all items. Besides, the issue of cess, which is in addition to the 28% tax, is also being discussed by another panel of ministers.