Centre reduces GST rate on ethanol to 5 pc from 18 pc
GST on Ethanol: Union Government on Thursday said that the Goods and Services Tax rate has been lowered to 5 percent from 18 percent on ethanol meant for blending under the Ethanol Blended Petrol (EBP) programme.
Minister of State for Petroleum and Natural Gas, Rameswar Teli, in a written reply to a question in the Lok Sabha on Thursday informed that in order to promote ethanol blending, the Government has lowered GST rate to 5 percent from 18 percent on ethanol meant for blending under the Ethanol Blended Petrol (EBP) programme.
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Teli further said that the measures taken by the Government to reduce dependence on imported gasoline include a number of policy initiatives for an increase in domestic crude oil production by generating quality geoscientific data and its easy access, awarding new exploration acreage, expediting production from new development acreages and focus on production maximization from existing production acreages.
"It has promoted the usage of biofuel in the country by notification of the National Policy on Biofuels (NPB) - 2018 which allows the use of multiple feedstocks for producing bio-ethanol for increased supply of ethanol for blending with petrol. The encouraging initiatives on the supply side of ethanol have prompted the Government to advance the target of 20 per cent ethanol blending in petrol in the country from 2030 to 2025-26," he said.
The Government has also notified Pradhan Mantri JI-VAN Yojna for promoting Second Generation (2G) ethanol production from cellulosic and lignocellulosic including the petrochemical route in the country by providing financial support, the written reply said.
-PTC News
