Delhi govt urges Centre to reduce GST on alternative products to SUP

New Delhi, July 12 (Agency) Delhi Environment Minister Gopal Rai on Tuesday urged the Centre to reduce the GST rates on raw materials used in the manufacturing of alternatives to single-use plastics (SUP).Rai wrote a letter to the Union Finance Minister Nirmala Sitharaman where he suggested that the reduction of GST in raw materials will encourage increased adaptation to the SUP alternative. “If we want to encourage alternatives to SUP in the country, then it is very important to reduce the GST rates on the raw material of its alternative. Doing so will encourage producers and consumers to move more towards alternatives to SUP. Also, it will facilitate better implementation of SUP ban on the ground and encourage the availability of these alternatives for 19 banned SUP items in the supply chain,” Rai said in the letter.He also said that the alternatives to SUP attract multifold GST and Import duty that makes the products costlier than SUP.”

Delhi Government had organized a three-day Plastic Vikalp Mela at Thyagaraj Stadium to encourage alternatives to SUP among the general public. While discussing with all the panellists during the round table conference on the last day of the fair, it was observed that manufacturers, producers and start-ups working on alternatives to SUP have to pay more GST for the raw material. When compared to bioplastics, which have an import charge of more than 40 per cent, plastic products are subject to a rate of importation that ranges from 10 to 20 per cent. Thereby, increasing the purchase cost of alternatives to SUP items. Industrial unions are unable to work in the single-use plastic alternatives industry in this circumstance, despite their desire,” Rai wrote in the letter. Meanwhile, the state government has set up 48 enforcement teams to monitor the restrictions imposed on SUP items. 15 teams from DPCC and 33 teams from the revenue department are working to inspect the restrictions on SUP items on the ground.