Earlier, most states such as Delhi did not tax the green fuel, while some levied VAT ranging between 2% and 4%. Following the introduction of GST, the price of each LPG cylinder will rise by Rs 12-15 each in states that did not tax the fuel. The increase will depend on the gap between the GST rate and prevalent tax in states that levied VAT. A simultaneous reduction in subsidy amount from June will compound the impact for consumers. “The subsidy amount of Rs 119.85 paid to eligible consumers in Agra, for example, till June has also been reduced.

Source: Economic Times July 03, 2017 03:33 UTC