Auto LPG body seeks GST cut, level playing field to spur usage

| | New Delhi
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Auto LPG body seeks GST cut, level playing field to spur usage

Wednesday, 28 August 2019 | PTI | New Delhi

(): The government should reduce GST on LPG used in automobiles to 5 per cent to provide the environment-friendly fuel a level playing field and spur its usage, the association of auto LPG has demanded. The Indian Auto LPG Coalition (IAC) wants the government to treat auto LPG at par with any other clean fuel like CNG and provide similar fiscal regime as a mix of such fuels would be needed to curb urban pollution in the world’s fastest-growing economy, its director-general Suyash Gupta said.

LPG is a clean fuel like compressed natural gas (CNG) and has cost advantages over diesel or petrol. Auto LPG is used in 70 countries world over as compared for 4-5 nations including Iran, India, and Pakistan using CNG as automobile fuel. Auto LPG requires a lighter cylinder than CNG and takes almost similar time as petrol/diesel for a refill, he said. “We have written to Union Finance Minister Nirmala Sitharaman as well as all members of the GST Council for considering reducing GST tax on auto LPG to 5 per cent from 18 per cent currently,” he said. LPG used for domestic purposes is taxed at 5 per cent and high incidence of tax for its usage in automobiles provides an incentive for illegal diversion, he said.

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