In a significant move for India’s environmental future, the government has announced new Goods and Services Tax (GST) reforms aimed at creating a “Green India.” Union Minister for Environment, Forest and Climate Change, Bhupender Yadav, has hailed these changes as a “historic Diwali gift” that will help the nation meet its Net Zero 2070 pledge.
Here’s a look at the key reforms and their positive impact on the environment:
Boosting Renewable Energy
The GST has been reduced on solar and wind devices, including panels, cells, and turbines. This cut will directly lower the cost of renewable energy projects, making them more affordable for consumers and speeding up India’s transition to clean power. It will also support domestic manufacturing under the PLI schemes, making Indian-made products more competitive.
Cleaning Up Industrial Waste
The GST on services from Common Effluent Treatment Plants (CETPs) has been cut from 12% to 5%. This change encourages industries to adopt centralized waste treatment solutions, which is crucial for reducing pollution in industrial areas and creating new green jobs.
Fighting Plastic Pollution
To combat single-use plastics, the GST on biodegradable bags has been lowered from 18% to 5%. This makes environmentally friendly alternatives more affordable, encouraging consumers and businesses to make the switch. It also supports small businesses and startups in the biodegradable materials sector, helping them grow.
Promoting Cleaner Transportation
GST rates have been reduced on both passenger buses and commercial goods vehicles (trucks and delivery vans) from 28% to 18%. This will make it cheaper for fleet operators to buy new vehicles, encouraging a move to more modern fleets and reducing reliance on older, more polluting vehicles. This reform is expected to shift people toward public transport and modernize India’s supply chain, leading to cleaner air.