Indian Auto LPG Coalition Demands Cut Down on GST Rates on Auto LPG and Revision of Government Policies.

  • 26-Jan-2020
  • Journalist: Peter Schmidt

To promote the adoption of clean automotive fuels, Indian Auto LPG Coalition has demand reduction in the GST rates of Auto LPG as well as on conversion kits for gaseous fuels. Auto LPG is used as fuel in automobiles and is among the cleanest alternative fuels with ‘zero’ Global Warming Potential. Auto LPG is currently being taxed at 18 per cent GST. However, about 2 per cent of the prohibitive tax on the GST rates is applicable on Auto LPG/CNG conversion kits. The Director General of Indian Auto LPG Coalition, Suyash Gupta stated that they expect the current government policies to be revised to promote the growth of environment-friendly transport fuels such as Auto LPG. Auto LPG is currently taxed at a high GST slab of 18 per cent. However, conversion kits for auto LPG and CNG are placed at the highest slab of 28 per cent which is usually for demerit items like tobacco, alcohol etc. Among the key nations that have successfully adopted this green fuel for transport are South Korea, Poland, Turkey, Japan, Australia, Mexico, Italy and Russia. Apart from the need to lower GST, another critical need is revision of the Type Approval norms which require companies to renew their cost prohibitive Type Approvals for Auto LPG and CNG conversions every three years.

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