Consumers would have to pay more for their LPG cylinders from this month onwards due to the twin effect of GST and reduction in subsidy levied on LPG. LPG cylinders will become more expensive by Rs. 32 plus consumers would have to shell out more inspection, installation, administrative charges for documentation for new connections as these charges have been placed under 18% GST slab.
LPG has become more expensive due to levying of 5% GST since earlier most states and union territories such as Delhi did not levy any GST on the LPG cylinders or charged a lower VAT of 2 to 4%.
However, consumers will feel the bite of increased prices due to a simultaneous reduction in subsidy amount from June and the increased GST rate. ‘The subsidy amount of Rs 119.85 paid to eligible consumers in Agra, for example, till June has also been reduced. According to the new notification, they will receive only Rs 107 in their bank accounts,” said, Vipul Purohit, National Secretary of All India LPG Distributors Federation.