Daijiworld Media Network - Bengaluru (SP)

Bengaluru, Jul 4: After GST was implemented, price of domestic LPG cylinders has witnessed a hike of four percent in Karnataka. At the same time, there has not been any appreciable change in the price of non-domestic LPG cylinders.

In the past, states were empowered to impose tax up to five percent on domestic LPG cylinders. Different states had, as per their discretion, had imposed tax at different rates on them. In Karnataka, cylinders were charged tax of one percent. As domestic LPG cylinders are being charged five percent under the new GST, consumers have to bear the added burden of four percent differential tax, sources said.

In the past, non-domestic LPG cylinders were charged about 18 percent tax by state and central governments together. Under GST, the same rate has been retained. Therefore there will not be any additional burden on consumers, it is gathered.

However, LPG distributors said that there is confusion about this additional tax burden on domestic consumers of LPG. There has not been any clarity even after holding a couple of meetings on this issue, they said, adding that currently cylinders are being supplied at old rates.