IAC Calls for GST Rationalisation to Boost LPG Adoption

The Indian Auto LPG Coalition urges GST slab rationalisation for LPG sectors to promote cleaner fuels and technological parity. A uniform 5% GST rate could align with global practices and drive sustainable growth, aiding MSMEs while fortifying India's carbon emission goals.

The Indian Auto LPG Coalition (IAC) is pressing for GST slab rationalisation on LPG products and retrofitment kits, urging a uniform 5% rate. This proposal, formally submitted to Finance Minister Nirmala Sitharaman, aims to boost the adoption of clean energy alternatives across industrial, commercial, and transportation sectors in India.

Currently, domestic LPG is taxed at 5%, whereas industrial, commercial, and automotive LPGs carry much higher GST rates, creating market anomalies and adding burdens on small businesses. The IAC claims these disparities lead to illegal diversions and discourage the use of eco-friendly fuels.

Suyash Gupta, Director General of IAC, emphasized the potential benefits of a standardised GST regime, linking it to global best practices and the enhancement of India's net-zero aspirations. The Coalition remains committed to further dialogue with the government to hasten policy changes for LPG vehicles, particularly in regions like Bengaluru.