Tax on gas cylinder is same everywhere, but why is the rate different everywhere?

LPG cylinder attracts 5% GST.

Gas Cylinder Rate: Due to the increase in the rates of gas cylinders, once again there is a discussion about the tax on gas and its rates. So know how much tax the government charges on a gas cylinder.

The prices of domestic LPG cylinders have increased once again. After the increase in rate on Wednesday, now the rate of gas cylinder ,Gas Cylinder Rates, Has reached around 1050. In many places 1040, in many places cylinder is being sold for 1053 rupees. Amidst the rising prices of gas cylinders, discussions have started on many issues and many types of false information are also being shared on social media. Actually, many types of wrong information is also shared regarding the tax on LPG cylinders. Whereas the fact is that the gas cylinder GST (Gas Cylinder Rates In GST) come under the ambit of tax and the same tax is levied everywhere.

In such a situation, we know that when only one tax is levied, then why the rates of gas cylinders are different and due to which the prices of gas cylinders change in every state. Know every single thing related to gas cylinder….

What is the tax on gas cylinder?

A message goes viral on social media and WhatsApp, in which it is said that up to 50 percent tax goes to the state government. But, this information is wrong. Actually, the price of gas cylinder comes under GST and there is only one tax on it in the whole country. The money received from tax is divided equally between the center and the state. Just as the price of petrol is outside the GST and states also levy VAT according to their own, it does not happen in LPG. Let us tell you that 5 percent GST is levied on LPG and 2.5 percent of these goes to the center and 2.5 percent to the state.

Why are the prices different?

Now let’s talk about why taxes are different even after being one. The reason for this is that commission and establishment charges are different in every state and all these charges depend on the geographical conditions of that state. Although the method of determining the establishment charge is the same, but transport charges are included in it and they keep on changing charges due to different. All these charges are different from state to state and this is the reason why cylinder prices are different everywhere in the country.

How are cylinder rates decided?

Now let’s talk about how cylinder rates are decided. Two factors are mainly responsible in deciding the price of LPG cylinder in India. First, the exchange rate of the rupee against the dollar and second, the international benchmark rate. When the price of LPG in the international market increases and the rupee weakens, the price of LPG in the domestic market increases. Right now both the factors are simultaneously responsible for increasing the price of the cylinder.

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