CGD firms request to bring PNG, CNG under GST

City gas distribution companies have requested state to bring piped natural gas (PNG)/ compressed natural gas (CNG) under the ambit of goods and services tax (GST), as taxes levied in Uttar Pradesh are higher.

CGDs in the state pay 10 per cent while purchasing CNG and while supplying they charge 12.5 per cent value added tax (VAT). They are also required to pay additional 14 per cent excise duty, which ultimately to leads to increase in cost for consumers.

Besides, no VAT credit is given to consumers in case of PNG used for household purposes.