Tax Rates For Subsidised Kerosene & Cooking Gas Rose Up To 5%: Oil Ministry

Tax Rates For Subsidised Kerosene & Cooking Gas Rose Up To 5%: Oil Ministry

The effective tax rates for subsidised kerosene and cooking gas rose up to 5% but fell on average 10-12% for most other oil products such as fuel oil, naphtha and lubricants under the freshly rolled out Goods and Services Tax (GST), an analysis by the Oil Ministry showed.

For subsidised cooking gas used by households, the effective tax rates went up by 4-5% in several states including Delhi, Rajasthan, Tamil Nadu, Uttar Pradesh, Bihar, West Bengal, Karnataka, J&K, Goa and Chhattisgarh. In many other states, tax rates remained unchanged or rose just a bit. The GST rate is 5% on domestic cooking gas, and 18% on non-domestic gas. In most states, the effective tax rates have fallen 3-6% on non-domestic cooking gas although in some states the rates have marginally risen too.

The effective tax rate on subsidised kerosene, which attracts 5% rate under GST, has swelled 3-5% in several states including Rajasthan, West Bengal, Uttarakhand, Odisha, Jharkhand and Haryana. For kerosene used for industrial purpose, which attracts 18% GST, the effective tax rate has shrunk 10-12% in most states.

The effective tax rate has substantially fallen in most states for fuel oil, naphtha, light diesel oil, bitumen and lubricants, all of which attract 18% GST. On average, the decline in effective tax rates under GST in most states is 12-13% for fuel oil, naphtha and lubes. The fall varies between 10-20% for light diesel oil. In case of bitumen, the decline is mostly limited to less than 2%. Read more

READ  Indian Railways loco drivers plan stir, train services likely to be hit in July

Leave a Reply

Your email address will not be published.