India Mulls GST Inclusion for Natural Gas and Aviation Fuel

Union Minister Hardeep Puri indicated a consensus to include natural gas and aviation turbine fuel under GST. While outlining the current GST rates on LPG, he emphasized the progress towards ethanol blending in petrol. Discussions on petrol and diesel under GST remain inconclusive.

The Indian government is contemplating bringing natural gas and aviation turbine fuel within the Goods and Services Tax (GST) framework, according to Union Petroleum Minister Hardeep Puri. During a recent briefing, Puri noted a growing consensus on this inclusion, although he refrained from providing a specific timeline.

Currently, commercial LPG cylinders are taxed at 18% GST and domestic ones at 5%. Puri highlighted successes like the Pradhan Mantri Ujjwala Yojana, noting that LPG has been under GST from the start. Natural gas inclusion in GST could see potential benefits recognized by states like Gujarat and Maharashtra, leading to broader acceptance.

The minister also spoke on ethanol blending, announcing a target of 20% ethanol in petrol by next year; this transition aims at reducing oil imports and emissions. While the government advances ethanol initiatives, mandatory blending with diesel remains experimental.

(With inputs from agencies.)