GST Rate Cuts to Accelerate India’s Green Transition: Environment Ministry

New Delhi, Mar 23 (KNN) Referring to last year's GST rate rationalisation on waste management services, biodegradable products and green transportation, Ministry of Environment on Monday said that the move would accelerate India's green transition. 

The Ministry noted that the indirect tax reforms are designed to accelerate the adoption of eco-friendly manufacturing, strengthen waste treatment infrastructure and promote sustainable mobility solutions.

"Aligned with national initiatives like ‘Viksit Bharat 2047’ and the LiFE (Lifestyle for Environment) movement, these changes support India’s Net Zero 2070 ambition and fulfil commitments under the Paris Agreement," the Ministry said in a release.

The all-powerful GST Council had earlier reduced GST from 12per cent  to 5per cent  on services provided by Common Effluent Treatment Plants (CETPs), while the GST rate on biodegradable bags was slashed from 18per cent  to 5per cent . The GST on buses and commercial goods vehicles was cut from 28per cent to 18per cent.

"These GST reforms make waste management, biodegradable products and green mobility more affordable and within reach. By cutting costs and supporting sustainable industries, these changes reinforce India's leadership in the global fight against climate change and lay the foundation for a cleaner, healthier and more sustainable future," the official release said.

(KNN Bureau)