New GST on LPG Cylinder: Domestic vs Commercial Tax Rates
- The GST on LPG cylinder is 5% for household domestic LPG and generally 18% for commercial or non-domestic LPG.
- Domestic LPG supplied to household consumers attracts 5% GST, whether subsidised or non-subsidised.
- Commercial LPG used in hotels, restaurants and industries generally attracts 18% GST, except qualifying NDEC supplies that attract 5%.
- GST-registered businesses can claim eligible Input Tax Credit on commercial LPG used for taxable business supplies, subject to GST rules.
- The GST on LPG cylinder after 22 September 2025 remains unchanged at 5% for household domestic LPG and generally 18% for commercial LPG.
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.
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New GST Rate on LPG Cylinders
There was no separate GST rate change for ordinary LPG cylinders on 22 September 2025. LPG supplied to household domestic consumers continues to attract 5% GST, while LPG supplied for ordinary commercial or industrial use generally attracts 18% GST.
| User Type | GST Rate From 22 Sep 2025 | Rate Before 22 Sep 2025 | Remarks |
|---|---|---|---|
| Household domestic consumers | 5% | 5% | Applies to LPG supplied for household domestic use |
| Commercial/non-domestic use | 18% | 18% | Generally applies to commercial and industrial LPG |
| Qualifying NDEC customers supplied by IOCL, HPCL or BPCL | 5% | 5% | Concessional rate applies to specified NDEC supplies |
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HSN: LPG is classified under HSN 2711, including applicable tariff items such as 2711 12 00, 2711 13 00 and 2711 19 10.
New GST on Domestic LPG Cylinder
| LPG Type | HSN Code | GST Rate From 22 Sep 2025 | Rate Before 22 Sep 2025 |
|---|---|---|---|
| Domestic LPG supplied to household consumers | 2711 | 5% | 5% |
| Non-subsidised LPG supplied to household domestic consumers | 2711 | 5% | 5% |
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For inter-State supplies, the corresponding IGST rate is 5%.
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New GST on Commercial LPG Cylinder
| Commercial LPG Use | GST Rate From 22 Sep 2025 | Rate Before 22 Sep 2025 | Remarks |
|---|---|---|---|
| Hotels, dhabas and restaurants | 18% | 18% | Ordinary commercial LPG |
| Food trucks and commercial kitchens | 18% | 18% | Ordinary commercial LPG |
| Industrial heating/process use | 18% | 18% | Ordinary industrial LPG |
| Qualifying NDEC supply by IOCL, HPCL or BPCL | 5% | 5% | Specified concessional category |
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Tip: If invoices bundle cylinder value with delivery/handling, determine if it is a composite supply led by LPG (then apply LPG rate).
Summary Table: Domestic vs Commercial LPG GST
| Category | Used For | GST Rate From 22 Sep 2025 | Rate Before 22 Sep 2025 |
|---|---|---|---|
| Domestic LPG | Household domestic use | 5% | 5% |
| Commercial LPG | Restaurants, eateries and other commercial use | 18% | 18% |
| Industrial LPG | Manufacturing/process use | 18% | 18% |
| Qualifying NDEC LPG | Specified NDEC customers | 5% | 5% |
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Reminder: Replace “New GST Rate” with “GST Rate” once the notification is issued. Maintain classification under HSN 2711.
Input Tax Credit on Commercial LPG
If you’re using commercial LPG for:
- Restaurant kitchen
- Food processing unit
- Hotel or canteen
- Industrial heat treatment
You can claim Input Tax Credit on the 18% GST paid, provided:
- You are GST-registered
- The LPG is used for business purposes
- You maintain proper GST invoices and returns
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.
