Archive · 2 Sep 2025
Auto LPG Coalition Seeks GST Relief on Fuels to Cut Costs
The Auto LPG Coalition (IAC) wants the government to change the taxes (GST) on different types of LPG.
They are asking for the same low tax rate (5%) for all LPG, like industrial, commercial and auto LPG, just like the domestic LPG.
Currently, these other types of LPG have higher taxes.
IAC believes this will help small businesses, reduce pollution, and encourage people to use cleaner fuels.
They also say it's fairer and matches what other countries do.
They hope the government will agree to make these changes.
Indian Auto LPG Coalition (IAC) seeks rationalization of GST slabs for various LPG types.
IAC has written to the Finance Minister ahead of the GST Council meeting.
Industrial and commercial LPG currently have an 18% GST rate, while auto LPG conversion kits have up to 28%.
IAC wants a 5% GST rate for all LPG segments to align with domestic LPG.
The coalition argues current taxes hinder cleaner fuel adoption and impact small businesses.
- Who
- Indian Auto LPG Coalition (IAC), Finance Minister Nirmala Sitharaman
- What
- Seeks rationalized GST slabs for LPG
- When
- Published September 2, 2025, ahead of GST Council meeting
- Where
- India
- Why
- To promote LPG as a fuel and address sectoral disparity
IAC's View
Government (Implied)
GST Rates on LPG
IAC's View
All LPG segments should have the same, lower GST rate (5%)
Government (Implied)
Currently taxes commercial and industrial LPG at higher rates
- Industry Request
- Rationalized GST slabs for LPG
- Advocate
- Indian Auto LPG Coalition (IAC)
- Current GST Rate (Commercial/Industrial LPG)
- 18%
- Current GST Rate (Auto LPG Retrofit Kits)
- Up to 28%
- Domestic LPG GST Rate
- 5%
- Proposed GST Rate
- 5% across all LPG segments
- Rationale for Request
- Promote cleaner fuels and reduce costs for businesses
Sources
Tyre industry seek GST relief to bring down operating costs
PM Narendra Modi's tax overhaul: India plans to slash GST rates on shampoos, hybrid cars and electronics - Telegraph India
Tyre industry seek GST relief to bring down operating costs
