Nitin Gadkari says there’s no proposal to impose additional GST on sale of diesel vehicles

New Delhi: Moments after saying he was of the view that an additional GST must be imposed on the sale of diesel cars, Union Transport and Highways Minister Nitin Gadkari clarified that no such proposal currently under active consideration by the central government.

“There is an urgent need to clarify media reports suggesting an additional 10 per cent GST on the sale of diesel vehicles. It is essential to clarify that there is no such proposal currently under active consideration by the government,” Gadkari posted on X, formerly Twitter.

“In line with our commitments to achieve Carbon Net Zero by 2070 and to reduce air pollution levels caused by hazardous fuels like diesel, as well as the rapid growth in automobile sales, it is imperative to actively embrace cleaner and greener alternative fuels. These fuels should be import substitutes, cost-effective, indigenous, and pollution-free,” the Union minister added in his post.

Earlier in the day, Gadkari had said, “Today evening, I am scheduled to meet Union Finance Minister (Nirmala Sitharaman). I have already drafted a letter where I have proposed an additional 10 per cent GST (on purchase of diesel cars).”

Gadkari made the remarks at an event on sustainable mobility organised by the industry body Society of Indian Automobile Manufacturers in Delhi.
In what could be seen as a significant development in the government's efforts to curb vehicular pollution, the minister informed that the sale of diesel vehicles has declined from 52 per cent in 2014 to 18 per cent at present.
India aims to meet its 50 per cent energy needs through renewable sources by 2030, and this additional GST was seen as an avenue to disincentivise fresh diesel car buyers.