The Next lie is here: State taxes are to blame for the rising cooking gas prices!

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Explanation

Rising petrol, diesel and cooking gas prices in India are making life difficult for the people. But whenever the question arises as to who is responsible for this price hike, false information is being deliberately spread accusing the state governments alone.

In this situation, news is circulating in social media, claiming the base price of cooking gas in India is Rs 495, the Union government tax is Rs 24.75 and adding the transport cost , the total is Rs 529.75. In addition, the state tax is Rs 291.36, state transport charge is Rs 15, dealer commission Rs 5.50 and subsidy Rs 19.57, bringing the total to Rs 861.18. Of these, only 5% is the Union government’s tax and the state government tax is 55%.

What’s the truth?

Unlike petrol and diesel, cooking gas cylinders are subject to Goods and Services Tax (GST). Home cooking gas cylinders are taxed at a total of 5%, both CGST and SGST. Commercial cylinders are subject to 18% GST.

In a February 2021 article on cooking gas, Vikatan reported, “The base price of 14.2 kg of cooking gas is Rs 710.09, the Central Goods and Services Tax (CGST) is Rs 19.29 and the State Goods and Services Tax (SGST) is Rs 19.9. The dealer commission is said to be Rs 61.33 for a total of Rs 810 and the government subsidy is said to be Rs 24.95.

The price of a cooking gas cylinder has gone up to Rs 850 in July 2021. At present, the state tax is only around 24-30 rupees. People are right now accusing that the subsidy is not coming as it used to be.

Conclusion:

In our search, the information spread that the Union government imposes a 5% tax on cooking gas cylinders and the state government a 55% tax is false. The state government does not levy VAT on cooking gas for domestic use. It is subject to GST. It is learned that the tax is levied at 2.5% by the Union Government and 2.5% by the State.

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