Nitin Gadkari pitches for lower GST on alternative fuels

The government wants to cut its crude oil import by 10 per cent

Road Minister Nitin Gadkari has written to Finance Minister Arun Jaitley seeking a reduction in excise duty on alternative fuels such as biodiesel and ethanol, to encourage eco-friendly fuel.

Biodiesel attracts zero excise duty. Some states such as West Bengal, Uttar Pradesh, Uttarakhand, Chhattisgarh and Rajasthan used to charge zero value added tax (VAT) on biodiesel. The Biodiesel Association of India had said that the higher GST rates could adversely impact the sector. The body feared that a high GST rate could shut the biodiesel industry, already reeling under the pressure of complex and varied taxation policies of the states.