The government is working towards raising the share of natural gas in the energy basket to 15 per cent from the current 6.3 per cent and is committed to bringing it under the Goods and Services Tax (GST) regime to eliminate cascading effect of multiple taxes, Prime Minister Narendra Modi said on Wednesday.“We are trying to eliminate the cascading effect of different taxes on natural gas across different states,” he said adding this would help bring down the cost of gas.
“We are eager to increase the share of natural gas in energy basket from 6.3 per cent currently to 15 per cent... We are committed to bringing natural gas under the GST regime,” he said.
When the GST in 2017 subsumed over a dozen central and states taxes, five products – crude oil, natural gas, petrol, diesel and jet fuel (ATF) – were kept out of it. This has meant that taxes paid on inputs cannot be offset by taxes on the final product.