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GST impact: Domestic LPG gets costlier, commercial LPG is cheaper

Newdelhi:3/7/17: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 1, 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.

On including petroleum under the GST regime, the matter has been tabled before the GST Council, which is yet to decide on it.

About Editor in chief

Ashok Palit has completed his graduation from Upendranath College Soro, Balasore and post graduation from Utkal University in Odia Language and literture.. He has also carved out a niche for himself as a scribe of eminence after joining the profession in 1988. He is also an independent media production professional. He brings loads of experience to Advanced Media, Ashok Palit as a cineaste has been active in film criticism for over three decades. As a film society activist, he soared to eminence for his profound commitment to the art film appreciation and aesthetics of cinema. His mode of discourse is often erudite but always lucid and comprehensible marked by a perfect acumen so rare in the field. A film aesthete with an immense fond of critical sensibilities, he wrote about growth and development of odia cinema in New Indian Express, The Times of India, The Hindustan Times, The Asian Age and Screen. He has been working as an Editor for Cine Samaya from 2002-2004.. He had made solid contribution on cinema in many odia Dailies and weekly such as Samaj, Prajatantra, Dharatri, Samaya, Satabadi, and weekly Samaya.

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