BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.
LPG (Liquefied Petroleum Gas) is a critical fuel in Indian households, restaurants, hotels, and industries. But did you know that GST rates differ for domestic and commercial LPG cylinders? Whether you’re using it for home cooking or running a food business, understanding the gst on LPG cylinder is key for accurate budgeting and tax compliance.
Yes. LPG cylinders are taxed under GST (Goods and Services Tax), but the rate depends on who’s using it and how:
| User Type | GST Rate | Remarks |
|---|---|---|
| Domestic household | 5% | Subsidized and used for home cooking |
| Commercial use | 18% | Hotels, restaurants, shops, etc. |
| LPG Type | HSN Code | GST Rate |
|---|---|---|
| Domestic LPG (Subsidized) | 2711 | 5% |
| Domestic LPG (Non-subsidized) | 2711 | 5% |
Both subsidized and unsubsidized domestic cylinders are taxed at a low 5% rate, making cooking gas affordable for households.
| Commercial LPG Use | GST Rate | Remarks |
|---|---|---|
| Hotels, dhabas, and restaurants | 18% | GST charged on full cylinder value |
| Food trucks and mess kitchens | 18% | Even small units are not exempt |
| Industrial heating/process use | 18% | Applied in full, no rate reduction |
| Category | Used For | GST Rate |
|---|---|---|
| Domestic LPG | Home cooking | 5% |
| Commercial LPG | Restaurants, industries | 18% |
| Industrial LPG use | Manufacturing, processes | 18% |
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If you’re using commercial LPG for:
You can claim Input Tax Credit on the 18% GST paid, provided:
Understanding the gst on LPG cylinder is crucial for both households and businesses. While domestic users enjoy a lower rate, commercial and industrial users must plan for the 18% GST and take advantage of Input Tax Credit (ITC) wherever applicable.
BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.