Budget 2018: Drop GST rate on biodiesel from 18% to 5%, demands industry
Levy on Biodiesel has gone
from 6% in excise duty to 18% in GST
BUDGET
2018: Struggling
to survive despite the government 's clean energy dream, biodiesel industries
have demanded the Goods
and Service Tax (GST) rate on them be slashed from the current 18 to 5
per cent.
The demand
came days after solar industry made a similar pitch, stating while the
unrealistic levy on the solar panels is killing the Indian industry and giving
an edge to Chinese exporters.
On Tuesday,
the Biodiesel Association of India (BDAI) wrote to Union Finance Minister Arun
Jaitley and Finance Ministers of West Bengal and Rajasthan seeking a reduction
of high GST rate.
The apex
industry body pointed out that while there is a huge potential of producing
more cleaner fuel in India, the extraordinary levy has bought the industry at
the "brink of extinction".
With the
implementation of GST from July 1 2017, levy on Biodiesel has gone from 6 per
cent in excise duty to 18 per cent in GST.
"This
has made Biodiesel costlier than High-Speed Diesel (HSD) and biodiesel users
will not get any Input Credit for use of it. Both these put together, the
effective cost of Biodiesel has become unviable to the end users. Eventually
the entire Biodiesel industry will come to a halt, despite this Green Fuel
having such environment and social benefits," BDAI said in the letters.
Made
directly from edible oil in equal quantity, of which India is a second highest
consumer, the bio-diesel helps in reducing the emissions by 30 to 100 per cent,
depending upon its blend in the normal diesel.
"With
18 per cent GST, the price come around Rs. 10 per litres, this is equivalent to
normal diesel," BDAI President Sandeep Chaturvedi told IANS.
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