Petroleum Minister Dharmendra Pradhan pressed that the natural gas must be brought under GST System. Pradhan said, “Natural gas is a cleaner fuel than coal. If coal can be brought under 5 percent GST, then why not natural gas?” He would discuss in this matter with the Finance Minister Arun Jaitley, said Pradhan.
Pradhan said at KPMG Energy Meeting in New Delhi, “We want to make the country a gas-based economy. After a long time, we have started capital spending in the gas economy… to make a gas grid.”
Petrol, diesel, crude oil, aviation fuel as well as natural gas have been kept outside from the ambit of Goods and Services Tax (GST) System. Currently, Federation of Indian Chambers of Commerce & Industry (FICCI) sent a letter by requesting to GST Council and said that must be brought the fuel in the 5 percent slab rate under GST. Exclusion of natural gas from GST has enhanced the cost of power producers.
The main aim of India’s inclusion of natural gas under GST is that to enhance the market share of natural gas from 6.5 percent to 15 percent in coming three to four years.
It is anticipated that the demand for conventional fuel will enhance along with electric vehicles. Pradhan said, “Globally, all economies have multiple sources of energy. For the consumption rate of India, we will need to have multiple sources of energy.” He further added that all types of sources such as coal, nuclear and renewable conventional will be compulsory. It is expected that India will utilize 25 percent of the world’s energy in coming 25 years as the comparison to 6 percent right now.