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Central and State Tax on LPG in India
Given the rising domestic LPG cylinder prices, a majority of individuals have the notion that the State Governments charge a 55% tax on gas cylinders. However, this is false and this fake news was spread by a viral social media post back in 2021.
Thus, to keep yourself well-informed about the LPG tax in India, keep reading. It is always important to have an idea of how much amount you pay for your gas cylinder actually goes towards taxes.
LPG Gas Tax Rate in India
As per the Central Board of Indirect Taxes and Customs (CBIC) official website, domestic LPG cylinders fall under the 5% GST (CGST – 2.5% + SGST – 2.5%) tax slab.
This LPG tax is charged by the Central Government and there is no separate tax levied on domestic LPG cylinders by the State Governments.
Central and State Tax on LPG in India
Now, apart from the 5% GST that the Central Government imposes, there are a few costs which add to the retail price of domestic LPG cylinders. As per the Petroleum Planning & Analysis Cell (PPAC), Rs.61.84 is chargeable as distributor’s/dealer’s commission. This amount also includes ‘delivery charges’ of Rs.27.60 and ‘establishment charges’ of Rs.34.24.
On the state level, no additional taxes are applicable. However, the price of domestic LPG cylinders tends to vary across regions due to the market determined price. This depends on various aspects like:
- Cost price per cylinder at the LPG bottling plant
- Uncompensated costs
- Inland freight charges, etc.
State Wise Tax on LPG in India
The applicable state-wise LPG tax is categorised in detail in the table below.
| State/Union Territory | GST on Domestic LPG |
| Assam | 5% |
| Andhra Pradesh | 5% |
| Arunachal Pradesh | 5% |
| Andaman & Nicobar Islands | 5% |
| Bihar | 5% |
| Chhattisgarh | 5% |
| Chandigarh | 5% |
| Delhi | 5% |
| Dadra and Nagar Haveli, Daman and Diu | 5% |
| Gujarat | 5% |
| Goa | 5% |
| Himachal Pradesh | 5% |
| Haryana | 5% |
| Jharkhand | 5% |
| Jammu & Kashmir | 5% |
| Kerala | 5% |
| Karnataka | 5% |
| Lakshadweep | 5% |
| Ladakh | 5% |
| Maharashtra (Mumbai, Navi Mumbai, Thane and Aurangabad) | 5% |
| Maharashtra (Rest of State) | 5% |
| Madhya Pradesh | 5% |
| Meghalaya | 5% |
| Mizoram | 5% |
| Manipur | 5% |
| Nagaland | 5% |
| Odisha | 5% |
| Punjab | 5% |
| Puducherry | 5% |
| Rajasthan | 5% |
| Sikkim | 5% |
| Tripura | 5% |
| Telangana | 5% |
| Tamil Nadu | 5% |
| Uttarakhand | 5% |
| Uttar Pradesh | 5% |
| West Bengal | 5% |
LPG Tax Breakup
Find the LPG tax breakup based on the current domestic LPG prices in Kolkata in the table below.
| Price Components | Values |
| Market Determined Price | Rs.823.802 |
| Adding GST | Rs.43.358 |
| Distributor Commission | Rs.61.84 |
| Retail Selling Price | Rs. Rs.929.00 |
LPG Price Without Tax
To conclude, LPG tax at 5% GST is chargeable on domestic LPG cylinders all across India. The slight variation in state-wise retail prices is due to the market determined price which is based on various factors. No additional taxes are levied on domestic LPG cylinders by the State Governments.
Additionally, you should stay updated on the latest domestic LPG cylinder prices while booking a refill. By doing so, you can stay vigilant on whether you are being overcharged by the distributor.
Related Articles:
Petrol and Diesel Tax in India
Link Aadhaar with LPG Connection – Online, Offline, SMS
Quick Summary
Contrary to popular belief, State Governments do not impose a 55% tax on domestic LPG cylinders in India. The tax rate per the Central Board of Indirect Taxes and Customs is 5% GST. Additional costs include distributor's commission and delivery charges. Domestic LPG prices may vary due to market factors. Stay informed to avoid overcharging.
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