Oil Ministry has said in a booklet that “Currently natural gas is taxed under the VAT regime with VAT ranging from 3 per cent to 20 per cent across states.” It further said that it would attract uniform GST rate at the consumption point anywhere in the country after doing away with current rates of excise duty and VAT. Further it said that there would be increase in state domestic product and socio-economic development owing to increased economic activities”. Highlighting the negative aspect, the Ministry said that “As gas is not under the ambit of GST, there is no input tax credit available. Further, the downstream industries are not able to claim the benefit of the tax credit of VAT paid on purchases of natural gas which is available for alternate fuels/feedstocks.”
https://www.outlookindia.com/newsscroll/oil-min-pitches-for-inclusion-of-natural-gas-in-gst/1720669
