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LPG Cylinder Comes Under GST, Then Why Different Prices in Every State

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The prices of domestic LPG cylinders have increased once again. Government oil companies have increased the prices of LPG Gas Cylinder today, i.e. on 6th October. Oil companies have increased the cost of 14.2 kg cylinder without subsidy by Rs 15. After this increase, it has become Rs 899.50 per cylinder in Delhi; it has reached about Rs 900.

At the same time, to buy a domestic gas cylinder in Patna, you will now have to pay 998. The price of domestic LPG cylinders has now gone up to Rs 926 in Kolkata and Rs 915.50 in Chennai. In such a situation, the question is, why is the rate of gas different in every state? Although LPG cylinders come under GSC, then their prices are different in every state. Know everything related to LPG price, in which you will know how much money the government gets from a cylinder…

How much tax is on a LPG Cylinder?

Talking about the tax in an LPG cylinder, it has a different system from petrol and diesel, in which the central and state governments do not levy separate taxes. It is subject to GST, and in this, only one tax is set in the whole country, and the government receives it. The government has included LPG in the 5 per cent slab, in which 2.5 per cent tax is given to the central government and 2.5 per cent to the state government.

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Information is shared on social media that the state government takes 55 per cent of the cylinder price as tax. But it is not so; only 5 per cent tax is accepted by the government, in which the central and state governments divide half and half.

What is included in the rate of a LPG Cylinder?

Explain that the introductory rate on 14.2 kg LPG cylinder includes distribution commission, establishment charge, delivery charge, and tax. But, the tax rate is the same in every state and tax is charged only based on 5 per cent.

Why the different rates?

Now let us explain why there are different rates in every state. Commission and establishment charges are extra in every state, which depends on the geography etc. Based on this, the establishment charges are fixed, as if the transport charges are more, these charges will be more there. These charges are based on every state and based on this, the rates of cylinders vary from state to state.

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Shubham Dubey
Shubham has very good knowledge in science and technology. He has 1 year of experience in writing articles. He also had worked for many websites. He loves singing and painting.

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