Congress wants GST on LPG gas cylinder rolled back

Remigio Civitarese
Luglio 5, 2017

Most segments of the petroleum and gas industry are not included in the GST, but with liquefied petroleum gas (LPG) coming under the new indirect tax regime, consumers in Delhi will be paying Rs 32 more from this month for a subsidised cylinder of cooking gas.

India's largest oil retailer Indian Oil posted on its website the revised prices of subsidised refills post-GST.

Oil companies' officials explained that the 5 per cent GST has resulted in a Rs 26.88 hike in rates in Delhi and the balance increase per cylinder is caused by the government's decision in June previous year to reduce the LPG subsidy by raising prices by around Rs 2.

The current price in Delhi is Rs 477.46 as against Rs 446.65 earlier.

However, under GST, which subsumed more than a dozen central and state levies, a 5 per cent tax was levied on subsidised LPG.

The Congress on Tuesday demanded that the 5% GST on domestic LPG cylinders be reversed immediately, arguing that it would be a burden on the poor and calling it Gayi Savings Tumhari (your savings have vanished). This is the steepest increase in domestic subsidised LPG rate since June 25, 2011, a hike of Rs 50 per cylinder, which was necessitated due to a jump in worldwide oil prices. In states that levied VAT, the increase will depend on the difference between the earlier tax and the GST rate.

Sources said the 5 per cent GST resulted in a Rs 26.88 increase in rate per cylinder in Delhi and the remaining hike of about Rs 3 is because of the decision since June previous year to raise prices by about Rs 2 to cut the subsidy.

In Kolkata, the hike was Rs 31.67 per refill of subsidised LPG and the new price is Rs 480.32.

VAT or sales tax was nil in Delhi as well as Chandigarh, Haryana, Jammu and Kashmir, Rajasthan, Tamil Nadu, Uttar Pradesh, West Bengal and some north-eastern states. This category attracts 18 per cent GST.

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