Before the budget, heavy industries and auto companies have made a fresh case for CNG vehicles which were once considered the symbol of clean transport. One of the main demands is to reduce GST on these vehicles from the current 28% to the same as electric vehicles which has 5% tax.
In the recent months, govt has been very clear about its support to EVs and has not replied to the demands of the powerful Japanese lobby to reduce tax on hybrids. Finance minister Nirmala Sitharaman has kept mum on GST changes in the budget as it is an issue decided by the GST Council which has ministers from the states.
The demand however comes at a time when a group of ministers is looking to rationalise GST and is looking at everything. Besides the issue of cess which is over and above the 28% tax is also being looked into by another group of ministers.
