How GST Has Impacted Domestic and Commercial Gas Prices
Depending on whether an LPG cylinder is used for commercial or domestic purposes, the Goods and Service Tax (GST) that will be levied will vary. GST on domestic LPG cylinders are lower when compared to commercial cylinders to help in keeping household costs lower.
GST Rate and HSN Code on LPG
The different GST rates along with the HSN codes are mentioned in the table below:
Type of Cylinder | HSN Code | GST Rate |
Commercial LPG Cylinders | 2711 | 18% |
Domestic LPG Cylinders | 2711 | 5% |
What is GST on LPG Cylinders?
GST is applicable for both commercial and domestic LPGs. The GST rate is usually lower for domestic cylinders to make it affordable for houses. On the other hand, GST rates are higher for commercial cylinders. It is important to know the difference between the two as the overall price will vary.
Domestic LPG is used in households, while commercial LPG is used in businesses and industries. Any company that provides LPG cylinders must follow all GST regulations and ensure taxes are paid. LPG suppliers must complete GST registration to sell cylinders.
GST Levied in Different States on LPG
The GST that is levied in different states on LPG are mentioned in the table below:
State | Commercial LPG GST Rate | Domestic LPG GST Rate |
West Bengal | 18% | 5% |
Tamil Nadu | 18% | 5% |
Gujarat | 18% | 5% |
Maharashtra | 18% | 5% |
LPG Tax Breakup - Example
LPG Type | GST Rate | Base Rate | Total Cost |
Commercial LPG | Rs.360 | Rs.2,000 | Rs.2,360 |
Domestic LPG | Rs.180 | Rs.1,000 | Rs.1,180 |
For businesses and consumers, it is important to understand the GST rates that applicable on LPG cylinders. Input Tax Credits (ITC) can be claimed by businesses if commercial cylinders are purchased. This can help to reduce the overall tax that must be paid. It is vital that businesses follow all GST rules to avail themselves of benefits.
FAQs on GST Impact on Gas
- How many cylinders can I get at a subsidised rate in a year?
You can get 12 cylinders at a subsidised rate in a year.
- What is the GST that is levied on domestic LPG?
Currently, the GST that is levied on domestic LPG is 5%.
- What is the GST that is levied on non-domestic LPG?
Currently, the GST that is levied on non-domestic LPG is 18%.
- Can I have more than one gas connection under my name?
No, you can have only one gas connection under your name.
- Can I book two gas cylinders in one month?
Yes, you can book two gas cylinders in one month.
Nishit Kunal, currently working as an Editor has been with BankBazaar for over 5 years with expertise in writing on loan, credit cards, etc. When not working, Nishit dabbles between being a cinephile, writing, and playing with his dogs.
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