Reduce GST On Alternatives To Banned Single-Use Plastic: Delhi To Centre

| Updated: 12 July, 2022 6:24 pm IST

NEW DELHI: The Delhi government on Tuesday urged the Centre to reduce the rate of GST on the alternatives to the banned single-use plastic and their raw materials.

The Central government banned single-use plastic across the country from July 1.

In a letter, Delhi environment minister Gopal Rai informed Union finance minister Nirmala Sitharaman about a recent “Plastic Vikalp Mela” organised by the Delhi government to encourage startups, companies, and individuals who are involved in manufacturing alternatives to single-use plastics (SUP).

“One of the major issues submitted by these entities was on account of the high cost of alternatives to SUP items and a higher rate of GST. Hence, users, as well as manufacturers, are facing hurdles to shifting to sustainable alternatives to single-use plastic items,” he said.

Copy of Delhi Environment Minister Gopal Rai’s letter to Union finance minister Nirmala Sitharaman


He further wrote, “Currently, even if the prices are reduced, there remains a basic need to have certain margins for achieving break-even point. Import fees on plastic products fall between 10-20 per cent but on bioplastics and sustainable alternatives, it exceeds 40 per cent. Thereby increasing the purchase cost of alternatives to single-use plastic items.”

With the pressing need to encourage the switch over to alternatives to single-use plastic items, it is crucial that GST rates on alternatives to single-use plastic items and raw material be reduced, the letter reads.

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