In a notable development, the union government is planning to bring natural gas within the ambit of the Goods and Services Tax (GST). The move is part of a major policy push to increase the share of natural gas in India’s energy mix from the current level of 6.2 per cent to 15 per cent by 2030. Bringing natural gas within the scope of GST is expected to make it more economical for both industrial and domestic use.

Currently, levies on natural gas are different for each state reaching as high as 24 per cent in some states. Hence, there is a demand from the industry to impose GST on natural gas. The ministry of petroleum and natural gas has also supported the demand and the proposal could soon be placed before the GST council.