Driving Sustainability: Lowering GST on Auto LPG

Introduction

The Indian Auto LPG Coalition (IAC) has urged the national government to reduce the Goods and Services Tax (GST) on Auto LPG from 18% to 5%, aligning with recent adjustments in the natural gas sector. This call for action comes in response to Andhra Pradesh’s decision to slash the Value Added Tax (VAT) on Natural Gas from 24.5% to 5%, potentially affecting the competitive landscape for cleaner automotive fuels like Auto LPG.

The Need for Change

Auto LPG serves as a viable alternative to conventional liquid fuels, catering to approximately 330 million vehicles across India. Recognized for its significant environmental, economic, and operational benefits, the Director General of the IAC emphasized its role in mitigating vehicular emissions and fostering a sustainable transportation ecosystem.

Advocating for Policy Reform

The IAC’s push for a reduced GST on Auto LPG is part of its broader initiative to level the playing field for clean automotive fuels. Additionally, the coalition commended the Ministry of Road Transport and Highways (MoRTH) for proposing amendments to the Central Motor Vehicles Rules (CMVR), simplifying regulations for vehicles equipped with LPG kits. These changes include extending the validity of type approvals and introducing additional performance tests.

Government Collaboration and Industry Impact

Acknowledging the government’s collaboration, the Director General expressed gratitude for the extended validity period, emphasizing its positive impact on the industry. With its lower emissions of carbon monoxide (CO), nitrogen oxides (NOx), particulate matter (PM), and hydrocarbons (HC), Auto LPG aligns with global efforts towards cleaner transportation and sustainable development.

Conclusion

The IAC firmly believes that a reduced GST rate for Auto LPG will accelerate the adoption of cleaner fuels, supporting India’s climate objectives and advancing towards a net-zero future.