Hyderabad: The Centre reduced GST rates on waste management, biodegradable products and transport vehicles to speed up adoption of sustainable solutions, according to an official release on March 23.
The GST rationalisation lowered taxes on key sectors to cut costs and expand access. The move aligned with national climate goals and aimed to support eco-friendly manufacturing and mobility. It also backed commitments under the Paris Agreement and the Net Zero 2070 target.
The government cut GST on services by Common Effluent Treatment Plants (CETPs) from 12% to 5%. This step reduced costs for MSMEs and encouraged collective waste treatment. At present, 222 CETPs operate across 21 states and treat 2212 MLD of industrial wastewater. The tax cut could save industries about ₹13.27 crore daily. It also supported 53 CETPs using Zero Liquid Discharge systems, which promote water reuse.
GST on biodegradable bags fell from 18% to 5%. As a result, prices may drop by about 11%, improving affordability. This change aimed to reduce plastic pollution and support compostable alternatives. It also encouraged more than 200 certified manufacturers to expand production.
GST rationalisation drives cleaner transport adoption
The government reduced GST on buses and goods vehicles from 28% to 18%. This decision aimed to replace older polluting vehicles with cleaner BS-VI models. These newer vehicles emit significantly less pollution than earlier standards.
Lower taxes also supported public transport expansion and improved connectivity. In addition, reduced logistics costs could help businesses while lowering carbon emissions. The reform aimed to make transport systems more efficient and sustainable.
Overall, GST rationalisation reduced costs across sectors and promoted green practices. The government said these steps would strengthen India’s position in global climate action while improving environmental outcomes.
