Central and State Tax On Lpg in India 2021 (Aug) Read! >> Read the news and find out some answers regarding the price hike of LPG in this article.
Are you experiencing nightmares about the price hike on LPG? The rising price of LPG, petrol, and diesel is causing this same condition to thousands of middle-class people in India. Along with the panic and frustration, their hearts are bearing some questions as well. All want to know the cause of this price hike.
Central and State Tax On Lpg in India 2021 may put some light on this matter.
Taxation In India
There are two major authorities to levy taxes in India, one is the Central Government, and the other is the State Governments. The Constitution of India has distributed the power of levying various taxes between the central and the states. It is also said in the Constitution that every tax that has been levied has to be backed up by a law that has been passed by the Parliament or by a State Legislature.
Domestic LPG comes under the Goods and Services Tax or is popularly known as GST, an indirect tax collected on the supply of goods and services. Central and State Tax On Lpg in India 2021 is integrally connected with the retail price of LPG.
Factors That Affect The Price of LPG In India
The formula for determining the retail price of LPG is quite complicated. Several components have to be kept in mind while calculating the price. The factor that has to be named first is the import parity price or IPP. The IPP includes Saudi Aramco’s LPG price, International market price, insurance, customs duties, port dues, free onboard price, ocean freight, etc.
This IPP is first calculated in dollars and then converted into rupees. The other factors are Central and State Tax On Lpg in India 2021, marketing costs, margins charged by oil companies, dealer’s commission, bottling charges, local freight charges.
After the addition of all this, we get the retail price of the non-subsidized LPG. The fluctuation of currency is also responsible for the changes in this price.
Amount of the Current Tax on LPG
In our country, the cost of the non-subsidized LPG cylinders is revised every month, and changes, if any, come to effect from the first day of each month. Previously various taxes levied on LPG used to amount to a total of 22.5%.
But, due to the implementation of GST Central and State Tax On Lpg in India 2021 amounts to 18% only. But this is not of huge help as the steep rise in the price of LPG due to the effect of other factors has made it quite expensive.
After exhaustion of subsidy, the remaining requirement has to be fulfilled by the people at the market price. The current price of a 14.2 kg LPG cylinder in the capital of India is Rs. 834.5
Final Thought
The whole country is currently worried about the price of petrol, but the hike in the price of LPG is much steeper. The search for Central and State Tax On Lpg in India 2021 revealed to us that the LPG had seen a price hike of 40% in the last year. Find here more about the hiked price on LPG
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