Gas producers pitch for GST inclusion

Domestic gas producers have pitched to bring natural gas within the ambit of the GST to boost the use of the environment friendly fuel and increase its share in the energy basket. They have also sought the lowering of import duty on LNG to make it competitive with polluting liquid fuel.

Natural gas is outside the ambit of the GST, and existing legacy taxes — central excise duty, state VAT, central sales tax — continue to be applicable on the fuel.

In its pre-budget memorandum to the finance ministry, the Federation of Indian Petroleum Industry (Fipi), an industry body that represents the likes of Reliance Industries as well state-owned firms, also demanded the reductionof the GST on the transportation of natural gas through pipeline as well as on the re-gasification of imported LNG.