The government has reduced the GST rate on ethanol which is intended towards blending beneath the Ethanol blended petrol (EBP) program to 5% from 18%.
Read Also: GST Impact on Petroleum Products in India
Beneath the government’s Ethanol Blended Petrol (EBP) Programme, Oil Marketing Companies (OMCs) used to sell petrol blended within the ethanol up to 10%. The program gets prolonged across India excluding UTs of Andaman Nicobar and Lakshadweep islands starting from 1st April 2019, to expedite the practice of other fuels or environment-friendly fuels. The interference indeed mentioned about to lessen the dependence of the import for energy needs and enhance the agriculture sector.
Apart from the same, the Cabinet committee on economic affairs led by Prime Minister Narendra Modi permitting fixing the higher ethanol rates comes from distinct sugarcane that relied on the raw materials beneath EBP program for the upcoming sugar season 2021-22 during ESY 2021-22 from 1st December 2021 to 30th November 2022.
The government had notified the administered price of ethanol in 2014. Towards the 1st time in 2018, the differential price of the ethanol upon the grounds of the raw material practised for the ethanol production was notified through the government.
