Update on GAS Sector – Proposal to bring natural gas and ATF under GST

Current Situation:

• Crude oil, petrol, diesel, and natural gas are outside the GST framework.
• VAT on natural gas: 14-24%
• VAT on ATF: 5-18%
• Basic Excise Duty on ATF by Central Govt: 11%

Possible impact if proposal is approved:

• Reduced tax burden for businesses.
• Companies can claim GST credit on purchases, potentially lowering tax costs.

Examples of Companies engaged in gas business :

• Indraprastha Gas Ltd (IGL)
• Mahanagar Gas Ltd (MGL)
• Gujarat Gas Ltd

– GAIL

Disclaimer : This is not an investment advice and this is not an investment recommendation.