GST on LPG Cylinder: Applicability, GST Rate and HSN Code
LPG cylinders fall within the scope of the Goods and Services Tax (GST) regulations. This article will talk about LPG cylinder's GST applicability. We'll learn about the LPG gas tax rate in India, its HSN code, and other tax details concerning gas cylinders.
Applicability of GST on cylinders and LPG
Every LPG household cylinder falls under the Goods and Services Tax (GST). This tax has fixed rates. The tax rate set by the Central Government, known as CGST, is 2.5%. The tax rate set by the States or Union Territories, SGST or UTGST, is also 2.5%. The combined tax rate, called IGST, is set at 5%.
GST rate and HSN code on LPG cylinders
| Item | HSN code | CGST Rate | SGST / UTGST Rate | IGST rate |
| LPG domestic cylinder | 2711 12 00 2711 13 00 2711 19 00 | 2.5% | 2.5% | 5% |
ITC claims for purchase of LPG cylinders
Commercial LPG cylinder GST can be claimed if used for business like hotels, restaurants, catering, or manufacturing. For domestic LPG cylinder GST, claiming ITC isn't an option.
To sum up, it's crucial to understand the dual GST rates for effective tax planning. Furthermore, businesses can benefit from the Input Tax Credit, offering an opportunity to optimise their overall tax strategy.
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About the Author
Annapoorna
I preach the words, “Learning never exhausts the mind.” An aspiring CA and a passionate content writer having 4+ years of hands-on experience in deciphering jargon in Indian GST, Income Tax, off late also into the much larger Indian finance ecosystem, I love curating content in various forms to the interest of tax professionals, and enterprises, both big and small. While not writing, you can catch me singing Shāstriya Sangeetha and tuning my violin ;). Read more
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