PANAJI
On the World Biofuel Day, the Goa Chamber of Commerce and Industry (GCCI) has appealed to the government of Goa to reduce the VAT rate of Piped Natural Gas (PNG) for industrial use from 12.5 % to 3 %. While welcoming the steps taken by the Central and State government to move to clean energy solutions, GCCI has brought to notice that the manufacturing sector using PNG as a fuel is affected by this transition, as the rate of VAT of PNG is 12.5 %.
It is noteworthy that the State government in consultation with the Goa State Pollution Control Board (GSPCB), had issued directions to prohibit the use of pet coke and furnace oil in the State of Goa on June 30 this year. Consequently, all units utilising pet coke or furnace oil as fuel would have to discontinue the use of the above fuels after a period of six months from the date of notification, that is up to December 31, 2021.
The Goa State Pollution Control Board has also recommended a list of the approved fuels in the State of Goa, which among others, contains Compressed Natural Gas (CNG)/LNG as an approved fuel on June 3, 2020.
The cleaner fuel of PNG is under the ambit of the Goa VAT Act, 2005. The current VAT rate of PNG for industrial use stands at 12.5 %. Since there is no VAT credit available on the product, it would have a cascading effect on the final cost to the consumers as well as make the products less competitive against the products from the other states, claims GCCI.
The rate of VAT on Natural Gas is more than four times the rate charged in Maharashtra, and double the rate of Gujarat and Haryana, points out GCCI and appeals to review the VAT rate and reduce it
