The Meerut Industrial Development Forum (MIDFo) has highlighted a disparity in the tax treatment of fuels used by industries, noting that liquefied petroleum gas (LPG) attracts 18 per cent tax under the Goods and Services Tax (GST) regime, allowing businesses to claim input tax credit.
In contrast, compressed natural gas (CNG) is not covered under GST and instead attracts around 10 per cent value-added tax (VAT), for which no input credit is available. The forum said this creates an uneven cost structure for industrial users.
Impact of Policy Measures on Industry
MIDFo also pointed out that recent government directives propose punitive action against the use of LPG in new industrial units. This, it said, could further complicate fuel choices for businesses already dealing with tax-related constraints.
Call for Policy Intervention
The industry body has urged the government to extend GST benefits to CNG used in industrial operations. It has requested authorities to take up the matter and ensure a more balanced and supportive tax framework for enterprises.
