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Indian Sugar Mills Association (ISMA) Requests Relaxation of GST on Flex-Fuel Vehicles

ISMA urges GST cut for FFVs like EVs, supports E-100 ethanol blends, and advocates for sugar industry and sustainability.

Parvathy Pillai
ISMA also reached out to the Automotive Research Association of India (ARAI).
ISMA also reached out to the Automotive Research Association of India (ARAI).

The Indian Sugar Mills Association (ISMA) has requested the Ministry of Road Transport and Highways for a relaxation in the Goods and Services Tax (GST) on Flex-Fuel Vehicles (FFVs).

Industry stakeholders underline the importance of introducing measures that facilitate the adoption of Flex-Fuel Vehicles (FFV), recognizing their pivotal role in meeting this target. Parity in GST on FFVs is one of such measures. Currently, FFVs are levied with a GST rate of 28%, which shows a significant contrast to the 5% GST rate applicable to electric vehicles (EVs). Such high GST rates will contribute to reducing the country’s fuel bill while simultaneously curbing carbon emissions from the transportation sector.

"Presently, FFVs are levied with a GST rate of 28%, a notable contrast to the 5% GST rate applicable to electric vehicles (EVs). We request parity in the GST rebate for FFVs, a move that will acknowledge ecological importance and empower consumers to seamlessly embrace environmentally conscious choices without bearing disproportionate financial burdens. Offering tax deductions for FFVs could incentivize the adoption of eco-friendly vehicles, promoting a greener transportation choice, "said Aditya Jhunjhunwala, President, ISMA, recognizing the significance of flex-fuel vehicles (FFVs) as a vital instrument for a greener future, the industry underscores the crucial need for fiscal equilibrium.

ISMA also reached out to the Automotive Research Association of India (ARAI), which is working towards the development of anhydrous ethanol blends with gasoline, urging a thorough exploration of the untapped potential inherent in E-100 hydrous ethanol blends.

Benefits of E100 Hydrous Ethanol Blends

  • E-100 blends are a new beginning in environmental mindfulness

  • It diminishes greenhouse gas emissions

  • It decreases the dependence on fossil fuels

  • E-100 hydrous ethanol blends improve air quality

  • Ethanol's inherent economic viability over traditional gasoline further strengthens its stature as a commendable alternative

  • The cost advantage of E-100 hydrous ethanol in comparison to fuel ethanol facilitates consumer-friendly pricing, initiating a transition towards eco-conscious choices without imposing financial constraints

Moreover, the production costs, both operational and capital, associated with E-100 (hydrous ethanol) are notably lower than those incurred in the production of fuel ethanol (anhydrous ethanol with 99.6% purity), the latter being used for blending with petrol.

Indian Sugar Mills Association (ISMA)

The Indian Sugar Mills Association (ISMA) serves as a prominent representative of the sugar industry in India. Since its establishment in 1932, ISMA has acted as a crucial link between the government and private sugar mills, striving to protect the interests of these mills through growth-oriented policies.

ISMA is also India's oldest industrial association and has been instrumental in the sugar export market since 1957. Working closely with state sugar associations, it addresses mill concerns with the central government. ISMA advocates for sugarcane farmers' well-being, striving to establish growth-oriented policies that protect all stakeholders' interests.

To enhance the sugar industry, ISMA has undertaken groundbreaking initiatives, such as the first-ever pan-India satellite mapping of sugarcane areas in 14 states, enabling better planning and estimation of sugar production. With a rich legacy, ISMA continues to drive the growth and sustainability of the Indian sugar industry while safeguarding the interests of its stakeholders.

The Indian Sugar Mills Association anticipates an invigorating collaborative journey, traversing alongside governmental bodies and industry collaborators, to transmute the vision of a greener and more sustainable future into vibrant reality.

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