Petroleum Ministry Pushes for Natural Gas Under GST

The Petroleum Ministry is advocating for the inclusion of natural gas within the GST framework to simplify the tax structure and encourage its usage as a cleaner energy source. Currently, natural gas is subject to multiple state taxes, resulting in higher costs and a fragmented market. The inclusion under GST would enable a uniform taxation system, streamline compliance, and reduce the burden on consumers. This move is expected to align with India's energy transition goals, fostering widespread adoption of natural gas. Industry stakeholders and policymakers have been discussing this shift, emphasizing its potential to enhance energy efficiency, economic growth, and environmental benefits. However, the proposal requires consensus among states, as it could impact their revenue streams. The push is part of broader efforts to integrate energy commodities into a unified tax regime, ensuring seamless trade and reduced costs.