Bringing natural gas under GST crucial for national grid, gas trading hub

Mumbai: Bringing natural gas under the ambit of goods and services tax (GST) will not only make transport of the fuel across the country more efficient but also facilitate setting up of the much discussed domestic gas trading hub, said industry players and analysts.

Finance minister Nirmala Sitharaman on Saturday announced plans for expansion of the National Gas Grid to 27,000 km from the present 16,200 km and said that to deepen gas markets in India, more pricing reforms will be undertaken.

“For free movement of natural gas, be it a gas grid or trading hub, GST is essential. Pipelines reaching more areas is positive and more and more consumers will at least be closer to the gas.