GST Rollout: Exclusion Will Hurt Natural Gas Suppliers, Says Mahanagar Gas
- Lack of input tax credit will make compressed natural gas unattractive, says MGL
- The CNG supplier will gain from Maharashtra government's decision to make it mandatory for taxis to run on CNG from February 2018
Fuel is one of the few commodities left out of the Goods and Service Tax's (GST) ambit, and at least two refiners are not too happy about it. Mahangar Gas Ltd.'s Managing Director Rajeev Mathur joined ranks with Oil And Natural Gas Corporation Ltd.'s chairman demanding that natural gas be brought under the indirect tax regime sooner than later.
“We have brought it up with the government and ministry of petroleum and natural gas,” said Mathur, in an interview to BloombergQuint, adding that the lack of input tax credit for customers could make natural gas unattractive.
Future Expansion
The natural gas distributor which has got distribution rights in Raigad, Maharashtra plans to start supplying pipe gas to 100 households within the next few days.
“We have opened one compressed natural gas (CNG) filling station in Raigad also, and there will be two more coming in on Mumbai-Pune express highway shortly,” Mathur said.
The sole compressed natural gas supplier in Mumbai, is also looking to capitalise on the Maharashtra government's new rules which mandates all cabs plying on the various taxi aggregator platforms to run on CNG by February 2018.
The company will set up 30 new CNG filling stations in Mumbai, in this financial year, said Mathur. An app is also in the works to ensure that the long queues outside filling stations reduce significantly, he added.
As more and more vehicles switch to the cleaner and cheaper fuel, Mathur said he eventually expects 8,000-9,000 new CNG vehicles to be added each month.
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