Indian Auto LPG Coalition (IAC)has appealed for a reduction in the goods and services tax (GST) rates on LPG conversion kits for automobiles from the current 28% to 5%. This would help boost vehicle conversions to Liquefied Petroleum Gas (LPG) which is an environment-friendly fuel.
LPG conversion kits allows vehicles to run on LPG rather than petrol or diesel.
GST (Goods and Services Tax) is an indirect tax that has replaced many Central and State taxes like excise duty,VAT and service tax. It is a single comprehensive tax levied on all goods and services produced in India as well as those imported from other countries.The GST council has categorised items in five major slabs – 0%, 5%, 12%, 18% and 28%.
Goods & Services Tax Council is a constitutional body for making recommendations to the Union and State Government on issues related to Goods and Service Tax.GST Council is a joint forum of the Centre and the States. It consists of the following members:(a) The Union Finance Minister is the Chairperson (b) The Union Minister of State, in-charge of Revenue of finance and (c) The Minister In-charge of finance or taxation or any other Minister nominated by each State Government.