IAC seeks uniform 5 per cent GST for auto, commercial and industrial LPG

The coalition has also written to the Karnataka Transport Secretary, pressing for a faster policy framework for the registration of new auto LPG vehicles in Bengaluru.

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The Indian Auto LPG Coalition (IAC), the industry body promoting clean fuel alternatives, has urged the Finance Ministry and the GST Council to rationalise tax slabs for industrial, commercial and automotive LPG, along with LPG retrofitment kits.In a letter to Finance Minister Nirmala Sitharaman ahead of the upcoming GST Council meeting, the IAC sought parity in tax rates to encourage wider adoption of LPG as a cleaner fuel.

Currently, domestic LPG attracts a GST of 5 per cent, while its industrial, commercial and automotive variants are taxed at 18 per cent. LPG conversion kits are taxed even higher, at 28 per cent.

The industry body argued that a uniform 5 per cent GST would help eliminate market distortions, improve safety standards, and align India with global best practices. It also warned that the current tax imbalance risks pushing users toward more polluting alternatives, undermining health and sustainability goals.

Suyash Gupta, Director General of IAC, said, “A rationalised GST regime at 5 per cent would boost adoption of cleaner fuels, protect livelihoods, and accelerate India’s journey toward net zero emissions.”

The coalition has also written to the Karnataka Transport Secretary, pressing for a faster policy framework for the registration of new auto LPG vehicles in Bengaluru.