February 18, 2021 3:21:49 am
Prime Minister Narendra Modi said on Wednesday the government is committed to bringing natural gas under the ambit of the Goods and Services Tax (GST), to reduce the cost of natural gas and boost its usage across the country.
The inclusion of petroleum and natural in the GST regime has been a consistent demand of industry, which has noted that the cascading impact of central taxes and different tax regimes across different states was leading to higher prices for end consumers. Industries that use natural gas as an input, such as power and steel, are currently not able to claim input tax credit (ITC) on central and state taxes paid on natural gas.
“We are committed to bringing natural gas under the GST regime. I want to tell the world, come, invest in India’s energy,” said Modi at a foundation stone laying ceremony for key oil and natural gas projects in Chennai.
“We are trying to eliminate the cascading effect of different taxes on natural gas across different states,” the Prime Minister added, noting that the inclusion of natural gas under the GST regime would lower its cost and boost usage. The Centre aims to raise the share of natural gas in India’s primary energy mix to 15 per cent in 2030 from 6.2 per cent currently.
Petroleum Minister Dharmendra Pradhan too has previously recommended inclusion of natural gas under the ambit of the GST to the GST Council, the key decision making body for decisions on the implementation of the indirect tax regime which includes representatives from each state government and the Centre.
The PM also said that the government planned to spend Rs 7.5 lakh crores over five years on creating oil and gas infrastructure.
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