Madhya Pradesh MSMEs Seek VAT Relief Amid Rising PNG Costs

Micro, small, and medium enterprises in Madhya Pradesh called for a reduction in the 14% VAT on piped natural gas for industrial use on Wednesday. The push comes amid rising production costs, exacerbated by increasing fuel prices stemming from the ongoing West Asia crisis.

During a meeting in Indore with the Goods and Services Tax (GST) Grievance Redressal Committee, the Association of Industries Madhya Pradesh highlighted how the current VAT is disadvantaging local MSMEs compared to those in neighboring states. Association President Yogesh Mehta emphasized the burden the VAT imposes on production costs.

Mehta pointed out that neighboring states levy only three to five percent VAT on PNG. He advocates reducing the VAT or bringing PNG under GST to enable MSMEs to claim input tax credits and alleviate financial pressures exacerbated by the crisis.

(With inputs from agencies.)