Major Global energy companies ask Indian Government to bring natural gas under the GST regime
Part of: GS Prelims and GS-III – Energy; GST; Taxation
- Major Global energy companies have called on the Government of India to bring natural gas under the GST regime at the India energy Forum held recently.
- Currently petrol, diesel, aviation turbine fuel, natural gas and crude oil fall outside India’s GST regime.
- Government officials have also indicated that the government is considering bringing natural gas under the ambit of the GST regime.
Benefits of bringing Natural gas under GST regime
- It would lead to a reduction in the cascading impact of taxes on industries such as power and steel, which use natural gas as an input.
- It would do away with the central excise duty and different value added taxes imposed by states.
- This would lead to an increase in the adoption of natural gas which would be in line with the government’s goal to increase the share of natural gas in the country’s energy basket from 6.3% to 15%.