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Himachal Pradesh abolishes VAT on subsidised amount on LPG under DBT
January, 04th 2014

In a major relief to consumers covered under the Direct Benefit Transfer for LPG consumers (DBTL), the Himachal Pradesh government amended Rule 17 of the HP VAT Rules 2005 to abolish VAT on the subsidy amount, an official spokesman said here today.

The state has successfully transferred LPG subsidy worth Rs 62.5 crore to the respective accounts of consumers till date, the official said.

The state government, in order to remove the disparity in the VAT being charged from DBTL consumers and non-DBTL consumers, has approved amendment under Rule 17 of HP VAT Rules 2005 vide which subsidised amount has been exempted from payment of the VAT, he said.

The amendment, he said, would bring parity in the VAT component to be borne by the DBTL consumers as well as non-DBTL consumers and added that Himachal Pradesh was first state to provide such relief to its beneficiaries.

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