LPG costlier by Rs 32; gas subsidy lowers due to GST impact

Households will have to shell out up to Rs 32 more for each cooking gas (LPG) cylinder from this month due to the twin impact of GST and a reduction in subsidy.

Consumers will also have to pay more for the two-year mandatory inspection, installation, administrative charges for documentation for new connections and additional cylinders as these have been put in the 18% slab under GST.

LPG has been put in the 5% GST slab. Earlier, most states such as Delhi did not tax the green fuel, while some levied VAT ranging between 2% and 4%.

LPG has been put in the 5 per cent basket under the GST. Moreover, the amount of subsidy has also been reduced, effective June, 2017.

The price rise is expected to be anywhere between Rs 12 and Rs 15 per cylinder, in states that earlier levied no tax on the fuel, according to the Times of India report. In other states, the rise will depend on the gap between the rate of GST on LPG and rate of VAT applicable earlier.

But the combined impact of GST and reduction in subsidy could mean an increase of about Rs 32 in total.

Not only this, the common man will also have to pay more for installation, administration and documentation charges for new connections and also for the mandatory two-year inspection.




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