Energy MNCs want natural gas to come under GST

Global energy majors are bullish on the growth of natural gas usage in India and have called on the government to bring natural gas under the GST regime at the India energy Forum.

Daily Current Affairs Quiz 2020

Key-Points

 Currently petrol, diesel, aviation turbine fuel, natural gas and crude oil fall outside India’s Goods and Services Tax (GST) regime.

Government officials have also indicated that the government is considering bringing natural gas under the ambit of the GST regime.

It would lead to a reduction in the cascading impact of taxes on industries such as power and steel, which used natural gas as an input.

It would do away with the central excise duty and different value added taxes imposed by states.

This would lead to an increase in the adoption of natural gas in line with the government’s stated goal to increase the share of natural gas in the country’s energy basket from 6.3% to 15%.