Natural Gas to be Taxed at Every Stage of Sale: Telangana High Court Clarifies Classification Under APGST Act

The Telangana High Court held that Natural Gas falls under Entry 23 of the 6th Schedule of the APGST Act, 1957, and is liable to be taxed as petroleum gas at every point of sale.

The petitioner argued that Natural Gas should be classified under Entry 118 of the 1st Schedule, which allows tax only at the first sale.

However, the respondent submitted that Entry 118 excludes petroleum gases. Since Natural Gas is similar to and used to petroleum gases, it would fall under Entry 23.

The Court accepted the respondent’s argument and held that Natural Gas is taxable at every stage of sale.