Bid to bring natural gas under GST
Natural gas players will be glued to the upcoming meeting of GST Council that could see the new government take a shot at bringing the feedstock under GST.
Natural gas under GST will be ``landmark event’’ leading to lower prices and benefiting companies such as Gujarat Gas, Petronet LNG and GAIL (India) Ltd, analysts said.
Natural gas at present comes under legacy taxes such as state VAT, central excise duty and central sales tax. The tax varies from state to state in the range of 14-24 per cent. The meeting of GST Council is scheduled on June 22.
Besides natural gas, the markets are buzzing with the possibility of the council looking at bringing aviation turbine fuel (ATF) under GST.
It could also review the levies on online gaming, horse racing and casinos.
``If natural gas is actually included under the ambit of GST, we reckon it would be a landmark event for the sector; it will create a level playing field for natural gas and help establish active gas markets (trading hubs, gas swaps),’’ analysts at IIFL Securities said in a note.
