Union minister Dharmendra Pradhan today said the government is keen to promote green energy and it will intervene with the Goods and Services Tax (GST) Council to ensure that the GST rates on bio diesel and other green energy products are reduced.
Pradhan, Union Minister for for Petroleum and Natural Gas was speaking at the inaugural session of Bioenergy Urja Utsava here. Union Minister of State for Energy and Coal Piyush Goyal too was present at the session.
“I and Piyush Goyalji are working together on the bio fuel and green energy and I can assure you that we will intervene with the GST council to ensure the GST rates on bio diesel and other green products are reduced,” he assured the industry stakeholders.
Under the GST rates announced recently, bio diesel, ethanol and other mixing products would be charged 18 per cent. For the last 10 years, bio diesel attracted zero excise duty.
The government has been promoting bio diesel it wants to cut its crude import by 10 per cent with this environment friendly fuel. However, the high incidence of tax on bio diesel will make it costlier than diesel and ultimately make it uncompetitive.