A GST of 5% is levied on the domestic LPG cylinders; no State imposes 55% tax
A post with some figures related to the domestic LPG cylinder price is being shared widely on social media with a claim that the Central government’s tax on an LPG cylinder is just 5% whereas the respective State governments levy a tax of 55%.
The GST (Goods and Services Tax) is levied on the domestic LPG cylinder. The Central and the State governments do not levy separate taxes of their own on the LPG cylinders. On the official website of ‘Central Board of Indirect Taxes and Customs (CBIC)’, it can be found that the domestic LPG cylinders fall under the 5% GST (CGST – 2.5% + SGST – 2.5%) slab. The same information can be also found in the ‘Ready Reckoner’ (November 2020) documentreleased by the ‘Petroleum Planning & Analysis Cell (PPAC)’, of the Government of India.
