Keep pulling the thread on Sanjay Sah.
India has a national goal to increase the share of natural gas in its energy mix from a current level of 7% to 15%.
There is a long-standing demand in India to bring natural gas under the national Goods and Services Tax (GST) framework.
In India, natural gas is subject to state-level Value Added Tax (VAT) rather than the national Goods and Services Tax (GST).
The differing tax treatments for Compressed Biogas (under GST) and natural gas (under state VAT) in India create operational issues for commingling the two gases.
India's Compressed Biogas (CBG) sector faces an inverted duty structure where the tax on the final product is approximately 5%, while the GST on project equipment and services is significantly higher.