GST impact: Auto LPG sellers want tax parity with CNG

LPG is taxed at 18% while CNG is taxed at 5%

Though lower Goods and Services Tax (GST) rates have led to a push in use of liquefied petroleum gas (LPG) in automobiles, there is lobbying to cut it further, at par with the rate of compressed natural gas (CNG).

A rate of 18 per cent has been set for commercial LPG, used as a low emission automobile fuel. CNG is taxed at five per cent. Prior to the July 1 rollout of GST, the tax rate for auto LPG was 23 per cent.

"We have requested both the GST Council and the ministry of petroleum to reduce the