No impact of GST on domestic LPG prices in Telangana and Andhra Pradesh

Hyderabad: GST will not have any impact on the price of domestic LPG cylinders in TS and AP.

The two Telugu states had levied 5 per cent VAT on domestic LPG cylinders in the previous tax regime. In the GST regime, LPG cylinders are under the 5 per cent tax slab, thus making no difference to consumers in TS and AP. However, in states where there was no VAT earlier, GST has led to an increase of up to Rs 32 per LPG cylinder.

At present, the price of a domestic LPG cylinder in Hyderabad is Rs 613.50. Of this, Rs



482 has to be borne by the consumers and Rs 131 is the subsidy component, which is credited in the bank accounts of consumers.

"The 5 per cent GST imposed on domestic cylinders has made no difference to consumers in the Telugu states as both the states were already levying 5 per cent VAT earlier. The only difference in Telugu states is that GST replaced VAT, while in other states where there was no VAT, it led to a sharp increase in prices," said K. Jagan Mohan Reddy, general secretary, TS LPG Distributors' Association.