GST impact on gas cylinder: GST rollout is not good news in terms of buying of household items, LPG cylinder at least.
GST impact on gas cylinder: GST rollout is not good news in terms of buying of household items, LPG cylinder at least. The LPG rates i.e cooking gas cylinder rates have gone up from 1st July due to two reasons – GST implementation and reduction in subsidy, according to a report in The Times of India. Now, after the GST rollout households will have to pay up to Rs 32 more as compared to the previous amount, the report added. The increase in gas cylinder rates will depend upon the state you reside in. The Times of India report says that after implementation of GST, cooking gas cylinder prices will rise by Rs 12-15 each in states that did not tax the fuel. Also, in other states, the hike in cylinder rates will depend on the gap between the GST rate and prevalent tax in states that levied VAT. Not only this, consumers will also have to pay more for the other gas related things as well namely the two-year mandatory inspection, installation, administrative charges for documentation for new connections and additional cylinders, the report added. This is happening because these inspection, installation, administrative charges and all have been put in the 18% slab under GST.
Noteworthy, LPG has been put in the 5% GST slab. But, earlier, most states such as Delhi did not tax the green fuel, while some levied VAT ranging between 2% and 4% and now after GST implementation, the prices of cooking fas cylinders are set to rise. Also, a simultaneous reduction in subsidy amount from June will act as a double whammy for consumers.
According to Vipul Purohit, national secretary of All India LPG Distributors Federation, people in Agra now only receive Rs 107 as subsidy amount in their bank accounts but earlier they used to get Rs 119.85, as per the TOI report. Reportedly, the minor difference in prices of cooking gas cylinders among states may also be there due to variable costs such as transportation and logistics.
However, news agency PTI in one of its report about the impact of GST on LPG had claimed that domestic LPG and a large number of daily use household products will become cheaper under the GST regime from July 1.