‘Govt needs to incentivise vehicle conversion to clean fuels’

The Indian Auto LPG Coalition has urged slashing of GST on conversion kits along with subsidy support to consumers shifting to environment-friendly fuels.

By   |  Published: 31st Jan 2021  3:04 pm

New Delhi: The apex body of auto LPG stakeholders in India has sought an active intervention from the government to incentivise consumers to convert their vehicles to clean gaseous fuels such as auto LPG.

The Indian Auto LPG Coalition has urged slashing of GST on conversion kits along with subsidy support to consumers shifting to environment-friendly fuels.

“Incentivising personal vehicle users to shift to clean gaseous fuels at a mass level can have significant air quality benefits apart from boosting the clean transport fuel industry,” the industry body said in a statement.

The LPG has long held that the prohibitive GST rate of 28 per cent on vehicle conversion kits does not sync with the government’s commitment towards clean energy.

“While the government has certainly shown a strong commitment to build India’s renewable energy capacity and turn to clean energy sources such as electric vehicles, its record on supporting low-hanging environment-friendly alternative fuels such as auto LPG could have been so much better,” said Suyash Gupta, Director General, Indian Auto LPG Coalition.

“Not only is auto LPG taxed at 18 per cent GST, conversion kits for auto LPG/CNG are taxed at a prohibitive 28 per cent. The government must reverse this policy of penalising clean alternative fuels and announce GST cuts on both auto LPG and its conversion kits this Budget,” he said.