Petroleum Gases GST Rate & HSN Code – 2711

Various industries must deal with petroleum gases regardless of whether they are for domestic fuel operations or industrial fueling. In India starting from July, 2017, petroleum gases are covered under the GST system and fall on HSN Code 2711. It is important for firms concerned with petroleum gases to know the 2711 HSN code and the corresponding GST rates. This article gives detailed information about HSN Code 2711, the affected GST rates on evaporated and superseded petroleum gases, and the respective employment of these codes in different industries.

What is the HSN Code 2711?

The Harmonized System of Nomenclature (HSN) is utilized as a standard in international trade to clearly define specific categories of goods for taxation purposes. HSN Code 2711 covers a wide array of petroleum gases such as Liquefied Petroleum Gas (LPG), natural gas, and other gaseous hydrocarbons. These hydrocarbons find application both in households and in industrial bases as well as in the transportation industry. The 2711 HSN code GST rate depends on the nature and primary use of the petroleum gas. It is important for the government to place these classes of gases under different tax slabs so as to balance equity and efficiency.

GST Rate on Petroleum Gases Under HSN Code 2711

Petroleum gases have tax foods spanning different purposes and purposes. Given below is a summarized table of the 2711 HSN code GST revenue rates of different types of gases petroleum:

HSN Code	Description	Rate (%)
2711	Petroleum Gases And Other Gaseous Hydrocarbons - Liquefied:	18%
27111100	Petroleum Gases And Other Gaseous Hydrocarbons - Liquified: Natural Gas	18%
27111200	Petroleum Gases And Other Gaseous Hydrocarbons - Liquified: Propane	5%
27111300	Petroleum Gases And Other Gaseous Hydrocarbons - Liquified: Butane	5%
27111400	Petroleum Gases And Other Gaseous Hydrocarbons - Liquified: Ethylene, Propylene, Butylene And Butadiene	18%
271119	Other	18%
27111900	Petroleum Gases And Other Gaseous Hydrocarbons - Liquified: Other	5%
27111910	Lpg (For Non-Automotive Purposes) Conforming To Standard Is 4576	18%
27111920	Lpg (For Automotive Purposes) Conforming To Standard Is 14861	18%
27111990	Other	18%
27112100	Petroleum Gases And Other Gaseous Hydrocarbons - In Gaseous State: Natural Gas	18%
27112900	Petroleum Gases And Other Gaseous Hydrocarbons - In Gaseous State: Other	18%

The differing rates of tax also exhibit the concern of the government towards gas and oil LPG HSN 2711 being more economically useful for households, until industrial and commercial purposes are served through standard taxation.

You Can Also Read: Stove Ranges HSN Code & GST Rate - 7321

LPG HSN Code and GST Consequences

One of the primary fuels for cooking among Indian households is LPG in liquid form, more commonly known as LPG. Its HSN code classification is 2711 will be subject for HSN claim but not limited to taxation purposes will always change from use.

1. Domestic LPG: The tax rate for this type of cooking gas has been set at five percent and especially for the domestic consumption and which serves its purpose. The far lower taxation proportion put in place ensures that families do not have to pay for exorbitantly high taxes on essential fuel.

2. Commercial and Industrial LPG: On the other hand, This sector has a higher GST proportion of 18%, which is in line with the customary tax industry duties put in place.

Compressed Natural Gas (CNG) and Its Taxation

Compressed Natural Gas (CNG) is being accepted more as a cleaner option for transportation as well as an industrial fuel. Under HSN Code 2711 for CNG, the GST rates are as follows:

1. For transport purposes: CNG utilized in vehicles will have a lower slab of 5% GST, as an incentive to adopt the eco-friendly fuels.

2. For Industrial CNG: CNG used in industry and power generation is treated the same as other industrial fuels and attracts GST at 18%.

‍

Effect of GST on the Petroleum Gas Market

The 2711 HSN code GST rate affects pricing mostly and marketing distribution and consumption in the petroleum gas industry. Other impacts are:

1. Price Controls on LPG for Domestic Consumers: The nominal 5% GST for domestic LPG supports affordability for millions of homes and curtails rampant increases in price.

2. Curb on Carbon Emissions from Oil: The shift of CNG towards transportation comes with decreased taxation and enables better fuel switching thus minimizing emissions.

3. Rise in Costs of Production: The 18% GST on industrial LPG and natural gas adds burden to the operational cost of manufacturing sectors leading to changes in price levels and profitability.

You Can Also Read: Top Ethanol Producing Companies in India

Conclusion

It is important to know the HSN code 2711 and its relevant GST rates for businesses and buyers. While domestic LPG enjoys a concessional 5 percent GST rate, commercial and industrial users face a higher 18 percent taxation. In the same way, CNG is also taxed differently based on its end use, in order to promote the use of cleaner fuels. The GST structure under the 2711 HSN code clearly shows the government’s objectives of ensuring low costs for consumers and the appropriate taxation for industries. In the gas petroleum business, alertness to these tax regulations is important for compliance and cost management.

FAQs

1. What Is The HSN Code 2711?

HSN Code 2711 refers to petroleum gases like LPG, natural gas, and CNG, which are used for domestic, industrial, and transportation purposes.

2. What Is The GST From Gas Under 2711 HSN Code?

The GST rate for petroleum gases under the 2711 HSN code is from 5% to 18%, depending on the use and type of gas.

3. What Is The GST On LPG For HSN Code 2711?

LPG HSN code also falls under 2711. Its rate is 5% for domestic use and 18% for commercial or industrial use.

4. Does natural gas come under the 2711 HSN code?

Yes, natural gas comes under the 2711 HSN code and it attracts 18% GST for industrial and commercial use.

5. What is the GST rate on CNG under the 2711 HSN code?

CNG under 2711 HSN code is charged 5% tax for transportation and 18% tax for industrial use.

6. Is there a different GST rate for LPG for domestic and commercial use?

Yes, domestic LPG HSN code is charged 5% tax and for commercial or industrial LPG, it is charged 18% GST.

7. Which gases are covered under gas HSN code 2711?

Gas HSN code 2711 encompasses LPG, natural gas, CNG as well as other gaseous hydrocarbons utilized in different industries.

8. Can businesses claim ITC on petroleum gases under 2711 HSN code?

In reference to petroleum gases under HSN Code 2711, businesses are eligible to receive Input Tax Credit (ITC) on GST paid, assuming they engage in taxable undertakings.