Central and State Tax on LPG in India
The LPG gas tax on domestic cylinders is uniform across states, with a 5% GST applied (2.5% CGST + 2.5% SGST). Despite viral misinformation, there is no separate gas tax by state on domestic LPG. This guide breaks down the latest LPG gas tax rate, state-wise applicability, and the full pricing structure you actually pay.
- LPG gas tax rate (domestic): 5% GST
- LPG gas tax rate (commercial use): 18% GST
- HSN code for LPG: 2711
- Distributor/dealer commission: ₹61.84 (includes delivery & establishment charges)
- No additional state tax on domestic LPG cylinders
- Retail price variation is due to bottling, transport, and market-linked cost—not tax differences
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
In addition to the 5% LPG gas tax rate (GST) on domestic cylinders, a few extra charges influence the final retail price. As per the Petroleum Planning & Analysis Cell (PPAC):
- Distributor’s Commission: ₹61.84
- Includes Delivery Charges: ₹27.60
- Includes Establishment Charges: ₹34.24
While the LPG gas tax is fixed at 5% GST (2.5% CGST + 2.5% SGST), there is no separate gas tax by state on domestic LPG cylinders. However, the retail price of LPG may still vary from one region to another. This is not due to state-level taxation, but because of:
- The cost of LPG at bottling plants
- Inland freight and logistics costs
- Uncompensated operational costs borne by oil marketing companies (OMCs)
These regional differences in LPG prices are a result of supply chain factors—not extra tax imposed by states.
State Wise Tax on LPG in India
There is no variation in LPG gas tax rate across Indian states. As per GST Council rules, the applicable GST on domestic LPG is uniform at 5% (2.5% CGST + 2.5% SGST) in all states and Union Territories:
| State/UT | 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 & Nagar Haveli, Daman & 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, Thane, 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
Based on the current LPG price in Kolkata, here's the latest LPG tax breakup for a standard domestic cylinder:
| Component | Amount (₹) |
|---|---|
| Market Determined Price | ₹823.80 |
| GST @ 5% | ₹43.36 |
| Distributor Commission | ₹61.84 |
| Retail Selling Price | ₹929.00 |
Conclusion
The LPG gas tax rate for domestic cylinders across India remains fixed at 5% GST (2.5% CGST + 2.5% SGST), with no separate gas tax by state. While the retail price may vary regionally, this is due to market-determined pricing, which factors in bottling costs, delivery, and freight—not additional state taxes. 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.
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