Govt committed to bring natural gas under GST regime, says PM Modi
The government is working towards raising the share of natural gas in the energy basket to 15 per cent from the current 6.3 per cent and is committed to bringing it under the Goods and Services Tax (GST) regime to eliminate cascading effect of multiple taxes, Prime Minister Narendra Modi said on Wednesday.
“We are trying to eliminate the cascading effect of different taxes on natural gas across different states,” he said adding this would help bring down the cost of gas.
“We are eager to increase the share of natural gas in energy basket from 6.3 per cent currently to 15 per cent... We are committed to bringing natural gas under the GST regime,” he said.
When the GST in 2017 subsumed over a dozen central and states taxes, five products – crude oil, natural gas, petrol, diesel and jet fuel (ATF) – were kept out of it. This has meant that taxes paid on inputs cannot be offset by taxes on the final product.
“Since 2014, we have brought in various reforms across the oil and gas sector, covering exploration and production, natural gas marketing and distribution. We are working on attracting domestic and international investment through investor-friendly measures,” Modi said. “I want to tell the world come invest in India's energy.” The Prime Minister dedicated to the nation the Ramanathapuram-Thoothukudi natural gas pipeline and Rs 500-crore gasoline desulphurisation unit at Chennai Petroleum Corporation, Manali. He also laid the foundation stone for the Rs 31,500 crore Cauvery Basin Refinery at Nagapattinam.
Modi said the Centre is planning to spend around Rs 7.5 trillion to create oil and gas infrastructure over the next five years, Prime Minister Narendra Modi said, adding that the government was working to reduce import dependence. He vowed to increase to the share of renewable sources in the energy basket to 40 per cent by 2030.
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