LPG Gas- A major decision was made at the GST Council meeting on September 3rd, approving the new GST reforms. The 12% and 28% GST slabs were removed, leaving only two slabs: 5% and 18%. GST rates have been reduced on everything from food items to clothing to cars, air conditioners, and televisions, effective September 22nd.
Due to the new GST reform, most common essential items are becoming cheaper starting September 22nd. From food and beverages to almost every daily essential item, prices are falling. Meanwhile, people are also searching for LPG cylinders and trying to figure out whether the price will decrease. So, let’s find out how much GST will be charged on LPG.
How much GST is currently charged?
The government levies different GST rates on domestic cylinders (cooking gas cylinders) and commercial cylinders. Domestic cylinders are charged 5% GST, while commercial cylinders are charged 18% GST. The GST Council has not announced any changes to the GST rate on LPG cylinders, which means that the GST on LPG will not be reduced.
Why 18% GST on commercial cylinders?
Effective September 22nd, the prices of domestic and commercial LPG cylinders will remain unchanged. There will be no change in these prices. The 18% GST on commercial LPG cylinders is implemented because these cylinders are used for business purposes, such as in hotels and restaurants.
These products are getting cheaper
It’s worth noting that several major decisions were approved at the GST Council meeting held on September 3. The decision by the GST Council, led by Finance Minister Nirmala Sitharaman, marked the biggest change since the implementation of GST in 2017. The Council reduced GST rates on items ranging from daily essential goods (FMCG) and healthcare products to educational materials, electronic goods, agricultural equipment, insurance, and automobiles.
The GST rate was announced to be raised to 40% only on sin products like tobacco. This time, cold drinks have also been included in this category. The GST rate on super-luxury cars has also been raised to 40%.
