New GST LPG Cylinder Rate: The New GST LPG Cylinder Rate in India continues with a concessional 5% for domestic households and 18% for commercial end-use as part of the 2025 GST structure, as reiterated after the September GST Council changes. Domestic supplies for home cooking remain taxed at 5% while hotels, restaurants, and industrial use are at 18%, maintaining rate stability for consumers and clarity for businesses.

Current GST rates

• Domestic (household) LPG cylinders: 5% GST, applied uniformly across India for subsidized and non‑subsidized cylinders used for home cooking.
• Commercial/industrial LPG cylinders: 18% GST for hotels, restaurants, eateries, food trucks, mess kitchens, and industrial processing.

Multiple guidance sources and news recaps confirm no change for domestic cylinders at 5% and continued 18% for commercial usage under the updated regime in late 2025.

HSN codes

LPG for GST purposes falls under Chapter 27, commonly mapped to HSN 2711 series for liquefied petroleum gases. References include 27111200, 27111300, and 27111900 for specific sublines used by compliance tools and invoicing.

ITC and compliance

• Input tax credit (ITC) eligibility: Commercial users registered under GST can claim ITC on LPG used for business, subject to standard conditions.
• Household consumers are not eligible for ITC on domestic LPG used for personal consumption.

For inter‑State supplies classified as IGST, the effective rate remains aligned at 5% for domestic and 18% for commercial, consistent with place of supply and end‑use classification.

Price impact

Historically, introducing and standardizing GST led to a modest net effect on domestic LPG prices due to the 5% concession, while commercial users saw simplification versus pre‑GST stacked taxes. In 2025, domestic cylinder base prices have remained broadly steady in recent months, with taxes applied per the slabs above rather than frequent rate changes.

Domestic vs commercial

• Domestic 14.2‑kg cylinder used for household cooking: 5% GST rate keeps effective consumer burden controlled and uniform across states.
• Commercial 19‑kg and other commercial cylinders: 18% GST, with businesses able to claim ITC if LPG is used for taxable supplies.

Media and enterprise tax guides consistently outline the same two‑slab distinction that aligns with the broader 2025 GST simplification narrative.

Billing scenarios

• Composite supplies: If invoices bundle LPG with delivery/handling, apply the rate based on the principal supply (LPG) when it constitutes a composite supply.
• Separate line items: If services are billed separately and are not naturally bundled, apply applicable rates per line item under GST rules and documentation standards.

Actionable tips

• For households: Expect 5% GST on domestic cylinders; check oil marketing company portals for current base price before tax.
• For restaurants and small businesses: Pay 18% GST and capture supplier GSTIN, HSN, and invoice details to claim ITC in returns.
• For accountants: Map SKU to HSN 2711 sublines and enforce end‑use classification at order capture to ensure correct tax logic.

Scannable bullets

• Primary rate: Domestic 5%, Commercial 18%, uniform nationwide.
• HSN mapping: 2711 series (e.g., 27111200/27111300/27111900).
• ITC: Allowed for commercial users, not for households.
• Composite billing: Apply LPG rate if it’s the principal supply.
• Base prices: Track OMC updates; tax slab is stable.

FAQs

Q1. What is the New GST LPG Cylinder Rate for households in 2025?
Domestic LPG for household cooking continues at 5% GST nationwide, covering both subsidized and non‑subsidized cylinders, with no recent change announced to this concessional slab.

Q2. What is the GST on commercial LPG cylinders used by restaurants?
Commercial LPG supplied to hotels, restaurants, and similar businesses attracts 18% GST, and registered taxpayers can generally claim ITC if used for taxable business purposes.

Q3. Which HSN code should be used for LPG in GST invoices?
LPG is classified in Chapter 27; commonly used HSNs include 27111200, 27111300, or 27111900, depending on product specification and system mapping in invoicing tools.

Q4. Can households claim ITC on LPG cylinders?
No, LPG used for personal household consumption is not eligible for ITC, as ITC applies to inputs used in the course or furtherance of business by registered persons.

Q5. Does GST on LPG vary by state?
No, GST rates are uniform across India; domestic LPG is 5% and commercial LPG is 18%, applied consistently regardless of the state of supply.

Conclusion

For 2025, the New GST LPG Cylinder Rate remains straightforward: 5% for domestic household use and 18% for commercial end‑use, anchored to HSN 2711 and supported by clear ITC rules for businesses. Stay compliant by classifying end‑use correctly, mapping the right HSN, and maintaining invoice documentation; check OMC portals for current base prices, then apply the correct GST slab. Call to action: Review your invoices this month to ensure end‑use classification and HSN mapping are accurate, and update your GST return workflows to capture ITC on commercial LPG.