In a move to make eco‑friendly services and products more affordable, the Ministry of Environment, Forest and Climate Change has rationalised the GST on three priority sectors: waste‑management, biodegradable packaging and green mobility. The revisions are part of the broader strategy to meet India’s Net Zero 2070 ambition and honour commitments under the Paris Agreement . Key Developments Common Effluent Treatment Plants (CETPs) : GST reduced from 12% to 5% on services provided by CETPs . Biodegradable bags : GST slashed from 18% to 5%, lowering the price of compostable carry bags. Buses and commercial goods vehicles : GST cut from 28% to 18% to promote cleaner public transport and logistics. Important Facts & Figures India has 222 operational CETPs treating 2,212 MLD of industrial wastewater across 21 states. The GST cut is projected to save industries about ₹13.27 crore per day . More than 200 certified compostable manufacturers are expected to scale up production. Reduced GST on buses and goods vehicles will lower upfront costs, encouraging a shift to BS‑VI compliant fleets that are up to ten times cleaner than BS‑IV models. Price of compostable bags is estimated to fall by ~ 11% (from ₹200/kg to ₹178/kg). UPSC Relevance These tax rationalisations illustrate the use of fiscal tools to achieve environmental objectives, a recurring theme in LiFE and the broader Viksit Bharat 2047 . Aspirants should link this to the concepts of green taxation, circular economy, and India’s climate‑policy architecture under international commitments. Way Forward Monitor the uptake of CETPs and assess whether the GST cut translates into expanded capacity and greater adoption of Zero Liquid Discharge (ZLD) systems. Encourage state governments to complement central tax incentives with infrastructure support for waste collection and recycling. Track market response to cheaper biodegradable bags to gauge shift away from single‑use plastics. Facilitate financing mechanisms for operators to replace old fleets with BS‑VI vehicles, leveraging the reduced GST as a cost‑share component. Integrate these fiscal measures with broader policy instruments—subsidies, standards, and awareness campaigns—to ensure a holistic green transition. By lowering the tax burden on green sectors, the government aims to make sustainable choices economically viable, thereby strengthening India’s leadership in global climate action and laying the groundwork for a cleaner, healthier future.