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04 Jul 2017

GST: Subsidized LPG cylinder costlier by up to Rs. 32

GST effect: Subsidized LPG cylinders now costlier

A subsidized LPG cylinder is now costlier by up to Rs. 32 due to GST. This is the sharpest hike in price in six years.

In Delhi, the rate per cylinder has gone up from Rs. 446.65 to Rs. 477.46.

In Chennai, price has gone up to Rs. 465.56, and in Kolkata, to Rs. 480.32. Subsidized cylinders in Mumbai now cost Rs. 491.25.

In context

GST effect: Subsidized LPG cylinders now costlier
GST replaced previously lower tax rates with a fixed 5%

How?

GST replaced previously lower tax rates with a fixed 5%

Previously, there was no excise duty on subsidized LPG all over the country, and sales tax ranged from zero to 5% in different states.

But under GST, a 5% sales tax was levied on LPG all over, thus increasing rates in states where it was previously less, including in Chandigarh, Haryana, J&K, Rajasthan, TN, UP, WB and some northeastern states.

The last sharp hike was six years ago

The last sharp hike of Rs. 50 per cylinder came in June 2011, which was an effect of an increase in international oil prices. Each household is eligible for 12 subsidized cylinders a year, and subsequently at market prices.

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