The Government of Karnataka (GoK) on March 24, 2026, issued a notification under Section 8-A of the Karnataka Sales Tax Act, 1957 to revise the tax rate on Liquefied Natural Gas (LNG). The amendment has been made in exercise of powers read with the Karnataka General Clauses Act, 1899.
As per the notification, the tax payable by dealers under Section 5(1) of the Act on the sale of LNG has been reduced to 5%. This reduction is aimed at rationalizing tax rates and potentially promoting the use of cleaner fuel alternatives.
The revised tax rate shall come into effect from April 1, 2026 and will apply to all eligible transactions of LNG under the Act.
[Notification No. FD 20 CSL 2026]
