New Delhi: 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).
Subsidised 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.
VAT or sales tax was nil in Delhi as well as Chandigarh, Haryana, Jammu and Kashmir, Rajasthan, Tamil Nadu, Uttar Pradesh, West Bengal and some north-eastern states. It ranged from 1 per cent to 5 per cent in other states.
However, under GST, which subsumed more than a dozen central and state levies, a 5 per cent tax was levied on subsidised LPG. This essentially meant that states where VAT was nil or less than 5 per cent, rates have gone up.
The rate of non-subsidised LPG, which consumers pay after exhausting their quota of below-market priced bottles, went up by Rs 11.5 to Rs 564. Such bottles attract an 18 per cent GST.