Auto LPG industry seeks alternate fuel policy, lower GST rates

The Indian Auto LPG Coalition has sought framing of an alternate fuel policy in the country.

Indian Auto LPG Coalition (IAC) is the nodal body for the promotion of liquified petroleum gas (LPG or cooking gas) in India.

“In addition to promoting electric vehicles (EVs), the centre should also focus on formulating an alternate fuel policy to bridge the gap till EVs can be proliferated,” Suyash Gupta, Director General of the IAC told BusinessLine.

“While the centre is subsidising EVs, they should also extend subsidies for Auto LPG which is a cleaner and cheaper fuel. The government may start by subsidising LPG conversion kits,” Gupta said.

The IAC has also written to the GST council seeking a reduction in the tax rate on auto LPG and conversion kits.

“We have sought bringing down the GST rate on Auto LPG conversion kits from 28 per cent to 5 per cent. We also seek bringing down the GST rate on Auto LPG from 18 per cent to 5 per cent,” Gupta said.