The stranded gas-based power plants in the country could get some relief if natural gas is brought under the GST, a parliamentary panel said. “The committee feels that natural gas being a cleaner fuel should not be placed at a disadvantageous position vis-a-vis other sources of energy like coal,” the parliamentary standing committee on energy in its report submitted to Parliament on Friday said.
Coal is under the GST with a 5 per cent tax, while natural gas is outside the GST. The committee, therefore, recommended that “natural gas should be brought under the GST, so that the taxes get rationalised and gas becomes cheaper and affordable,” the report said. Petroleum products such as kerosene, naphtha and LPG are under the ambit of the GST even as the government has kept five more fuel items — crude oil, natural gas, aviation fuel, diesel and petrol — outside the GST.
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