With all grades of liquefied petroleum gas (LPG) coming under GST, consumers in India will be paying more from this month for their cooking gas cylinders.
While petroleum is not under the Goods and Services Tax (GST) that rolled out from July 01,2017 , the central government clarified that day that both domestic and commercial liquefied LPG grades will be taxed under the GST, which is now effective pan-India except in Jammu and Kashmir.
LPG has been placed in the lowest 5 per cent GST bracket, the other rates in the new indirect tax structure being 12, 18 and 28 per cent.
Pre-GST, most states did not tax LPG, while others levied value added tax (VAT) ranging between 2 per cent and 4 per cent. Domestic LPG attracted zero custom and excise duty.
Post-GST implementation, an LPG cylinder will cost around Rs 12-15 more in states that did not tax the clean fuel. Instead, in states that levied VAT, the increase will depend on the difference between earlier tax and the GST rate.
The price of commercial LPG, however, has come down under the GST regime, where the tax on this category of item is at 18 per cent. Previously, LPG for commercial use attracted 22.5 per cent tax, including 8 per cent excise duty and 14.5 per cent VAT.
A commercial LPG cylinder earlier available in Delhi for Rs 1,121, will now cost Rs 1,052.
The lower GST on commercial LPG signifies lower prices also for auto LPG, thereby giving further boost to the use of this environment friendly fuel
No comments:
Post a Comment