LPG Cylinder Booking Tax: Due to increasing tension in the Middle East, gas supply is being seriously affected. Its direct impact is visible on the prices of LPG in India. Recently, the government had increased the prices of domestic and commercial gas cylinders, due to which people are facing a lot of problems, but in the meantime, the Chamber of Trade Industry (CTI) has written a letter to Prime Minister Narendra Modi demanding to make LPG and PNG tax-free.

CTI says that if the tax on these is removed, then the prices of gas will fall, due to which the common people can get a lot of relief.

At present, 5 percent GST is levied on domestic LPG cylinders, while up to 18 percent GST is levied on commercial cylinders. If we talk about PNG, it is not yet under the purview of GST and state governments levy VAT on it at different rates, which ranges from about 3 percent to 14.5 percent. For example, 5 percent VAT is applicable on PNG in Delhi.

LPG will be cheaper after GST is removed

Domestic LPG Cylinder: Currently its price in Delhi is Rs 913. After removal of GST, it will remain around Rs 870, i.e. it will be cheaper by around Rs 43.

Commercial Cylinder: Its price in Delhi is Rs 2078. After removal of GST, it will become approximately Rs 1760, i.e. there will be a saving of around Rs 318.

People will get relief by removing GST

CTI Chairman Brijesh Goyal has appealed to the government that tax relief should be given in view of the current circumstances. He believes that this will not only benefit the common consumers but will also provide relief to small businesses. Other officials of the organization say that due to the increasing crisis in West Asia, there has been instability in the global oil and gas market, due to which the demand in India has also increased.

Especially in Delhi, a rapid increase in the number of PNG connections has been seen. While in February 2026, about 686 new connections were being added every day, by March this figure increased to about 2000 every day. Overall, if the government gives tax exemption on LPG and PNG, it will provide great relief to the general public.