The central government is more inclined towards promoting vehicles that produce less or no pollution. It’s the reason the government is coming up with new ways to encourage people to buy such vehicles. ZeeBiz sources said that for the same reason, a government committee has proposed to reduce the Goods and Services Tax (GST) from 28 per cent to 5 per cent on flex fuel automobiles.  

Sources said that proposal can be sent to the fitment committee of GST.

It is also learnt that the government is also contemplating cutting GST on hybrid vehicels from its current rate of 28 per cent. 

GST on hybrid vehicles can also be reduced from 28 per cent to either 18 per cent or 12 per cent.

Sources also told that the government has no plans to reduce GST on petrol and diesel vehicles.

Source: Zee Business 
https://www.zeebiz.com/automobile/news-central-government-proposes-to-reduce-gst-on-flex-fuel-automobiles-hybrid-vehicles-bajaj-auto-tvs-236561