Domestic cooking gas (LPG) price has been hiked by up to Rs 32 per cylinder - the steepest increase in six years - following implementation of the Goods and Services Tax (GST).
PTIrNEW DELHIrrSubsidised LPG rates have been increased to Rs 477.46 per 14.2-kg cylinder from Rs 446.65 in Delhi after GST was implemented from July 1.rIn the previous tax regime where separate factory-gate duty and sales tax were levied, LPG attracted nil excise duty all over the country.rVAT or sales tax was nil in Delhi as well as Chandigarh, Haryana, J&K, Rajasthan, Tamil Nadu, UP, West Bengal and some north-eastern states. It ranged from 1-5% in other states. However, under GST, a 5% tax was levied on subsidised LPG. This essentially meant that states where VAT was nil or less than 5% , rates have gone up.rEvery household is entitled to 12 cylinders of 14.2-kg each at subsidised rates in a year. Any requirement beyond rthat has to be purchased at market price. rSources said the 5% GST resulted in a Rs 26.88 increase in rate per cylinder in Delhi and the remaining hike of about Rs 3 is because of the decision since June last year to raise prices by about Rs 2 to cut rthe subsidy.