The GST rollout and the reduction in subsidy will see your cooking gas (LPG) cylinder getting costlier. The cooking gas will get costlier by Rs 32. Moreover 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%.
Following the GST rollout, LPG cost will rise between Rs 12 to 15 in all states that did not tax the fuel.
The reduction in subsidy amount from June will also impact consumers. For instance the subsidy amount in Agra has been reduced from Rs 119.85 to Rs 107. The reduction in subsidy and the GST has ensured that the cost of the cylinder has gone up by Rs 32.
The cost of the commercial cylinder has however been brought down by Rs 69 owing to GST. Earlier, LPG for commercial use attracted 22.5% tax, including 8% excise duty and 14.5% VAT, but after the introduction of GST, they will have only 18% tax on them. The cost of such cylinders was Rs 1,121 each earlier and will now be Rs 1,052.