Subsidised LPG rate climbed by up to Rs 32 per cylinder post GST

New Delhi, Jul 4 Domestic cooking gas (LPG) cost has been hiked by up to Rs 32 per cylinder - the steepest increment in six years - following usage of the Goods and Services Tax (GST).

Subsidised LPG rates have been expanded to Rs 477.46 for every 14.2-kg cylinder from Rs 446.65 in Delhi after GST was implemented from July 1.

In the previous indirect tax regime where separate factory-gate duty and sales tax were demanded, LPG pulled in a zero or nil extract obligation everywhere throughout the nation.

VAT or sales tax was nil in Delhi and also Chandigarh, Haryana, Jammu and Kashmir, Rajasthan, Tamil Nadu, Uttar Pradesh, West Bengal and some north-eastern states. It gone from 1 per cent to 5 per cent in different states.

Notwithstanding, under GST, which subsumed more than a dozen central and state levies, a 5 per cent impose was exacted on sponsored LPG. This basically implied states where VAT was nil or under 5 per cent, rates have gone up.

Other than Delhi, subsidised LPG cost has been hiked by Rs 31.67 per cylinder to Rs 480.32 in Kolkata and Rs 31.41 in Chennai to Rs 465.56, according to information available from oil companies.

In Mumbai, where a VAT of 3 for each penny was relevant beforehand, the cost has gone up by Rs 14.28 to Rs 491.25 for every chamber.

This is the steepest increment in household financed LPG rate since June 25, 2011, a climb of Rs 50 for every barrel, which was necessitated due to a jump in international oil prices.

Each family unit is qualified for 12 barrels of 14.2-kg each at subsidised rates in a year. Any requirement beyond that has to be purchased at market price.

The rate of market-evaluated 14.2-kg cylinder in Delhi is Rs 564.

Sources said the 5 per cent GST resulted in a Rs 26.88 increase in rate per cylinder in Delhi and the rest of the climb of about Rs 3 is a result of the choice since June a year ago to raise costs by about Rs 2 to cut the appropriation.

The rate of non-subsidised LPG, which consumers pay in the wake of depleting their share of below-market priced bottles, went up by Rs 11.5 to Rs 564. Such bottles attract an 18 per cent GST.