Road ministry seeks GST rate cut for hybrid cars and CNG vehicles

The ministry of road transport and highways has written to the finance ministry, seeking a goods and service tax rate cut for vehicles running on hybrid power and compressed natural gas. Business Standard has learnt that this communication was sent earlier this month, before the announcements by Finance Minister Nirmala Sitharaman to boost economic activity.

The finance ministry will consider whether to include this in the agenda of the next GST Council meeting, which is expected to be held on September 19 and 20 in Goa. The decision will be with the GST Council.Officials said the finance ministry will consider revenue implications of a rate cut for CNG and hybrid vehicles before making any move.