Indian Biogas Association calls for end to tax on biogas

The Indian Biogas Association (IBA) has launched a campaign calling for the government to remove taxes on biogas products in the country.

A nationwide association of biogas operators, manufacturers and plant planners, IBA has just launched an online petition calling on the government to exempt biogas from Goods and Services Tax (GST).

“According to the Government of India, all Biogas (Biogas plant, piped Biogas & Bio-CNG) and its products are considered to attract 12% GST. Earlier, no CST (Central Sales Tax) was applicable and many states including Rajasthan and Gujarat exempted it from VAT also. Then why 12% GST?” the IBA writes in the petition.

IBA stresses that biogas presents a solution to India’s reliance on imported fossil fuels, one which would ease the economic burden on the country while also improving its environmental performance. The petition stresses that the biogas industry could offer a host of benefits to India.

“We all know that Biogas is a form of energy, which not only gives energy, but also has got Bio-fertilizer associated with it. Once streamlined, it can contribute to Swachh Bharat, renewable energy, and organic farming, decentralized energy generation, women upliftment, employment generation, rural and social upliftment and many more benefits. These points are an essential part of forming a healthy eco-system based on circular economy.”

As well as calling for supporters to sign its petition hosted on thepetitionsite.com, IBA also asks them to send letters to decision makers such as the Ministry of New and Renewable Energy, showing support for biogas’ exemption from GST.