GUJARAT VAT RATE AMENDMENT
GUJARAT VAT RATE AMENDMENT: CNG SOLD TO ‘SPECIFIED DEALER’ WITHIN THE STATE
Notification No. GHN-76-VAT-10-2022-443-S.41(1)(20)-GST Cell dated 2nd November 2022 provides remission of 10% tax payable by a Registered Dealer on the turnover of sales of the CNG sold to the ‘Specified Dealer’ who is granted license to dispense CNG in a dispensing station as automotive fuel under the Explosive Act, 1884 and who sells the said goods exclusively to the retail consumers within the State, as fuel in vehicles.
As per Notification dated 2nd November 2022, ‘Specified Dealer’ is the dealer who is granted license to dispense CNG in a dispensing station as automotive fuel under the Explosive Act, 1884 and who sells the said goods exclusively to the retail consumers within the State, as fuel in vehicles.
In view of Notification dated 2nd November 2022, Dealer procuring CNG from CNG manufacturer or Oil Marketing Company (OMC) not holding license to dispense CNG in a dispensing station as automotive fuel under the Explosive Act, 1884 and is operating under the license issued to CNG manufacturing Company / OMC, is not eligible for procurement of CNG with the 5% VAT rate.
Now definition of ‘Specified Dealer’ provided in the Notification dated 2nd November 2022 is amended vide Notification No. GHN-61-VAT-10-2022-443-S.41(1)(23)-GST Cell dated 15th September 2025 as under:
“specified dealer” shall mean the dealer registered under the Act who sells CNG exclusively to the retail consumers within the State, as a fuel in vehicles.”
In view of amendment dated 15th September 2025, all dealers selling CNG to retail consumers within the State, as fuel in vehicles are eligible for effective VAT rate of 5% provided under notification number GHN-76-VAT-10-2022-443-S.41(1)(20)-GST Cell dated 2nd November 2022.
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