Demand to bring natural gas under GST.
According to FIPI, bringing natural gas under GST will have a positive effect, promote fuel usage and will not cause problems due to different types of taxes.
Handbook before budget- In the memorandum submitted before the budget to the Finance Ministry, FIPI said that VAT on natural gas is very high in various states. It is 14.5 percent in Uttar Pradesh and Andhra Pradesh, 15 percent in Gujarat and 14 percent in Madhya Pradesh. It states, “Since the gas-based industry does not get the benefit of tax credit on VAT, the cost of production of the concerned industrial customers rises and it has a negative impact on the economy.”
Also read: If you want to take a personal loan, you are getting loans at the lowest interest rate in these banks.
Bringing natural gas in GST filed will benefit- According to FIPI, bringing natural gas under GST will have a positive effect, fuel usage will be increased and there will be no problem arising due to different types of taxes. The Prime Minister has set a target to increase the share of natural gas in total energy from the present 6.2 percent to 15 percent by 2030. Increased use of natural gas will reduce fuel costs. Also, there will be a reduction in carbon emissions. This will help the country to fulfill its COP (Conference of Parties) -21 commitments.Also Read: Good Hints for the Economy! FPI invested Rs 5,100 crore in India in the first 8 days of the year
At the same time, FIPI has also sought to rationalize GST on transport service through natural gas pipeline. Currently, GST on services related to transportation of natural gas through the pipeline is 12 per cent (with input tax credit benefit) and 5 per cent (without input tax credit).