Indane Gas, Bharat Gas, HP Gas Cylinder New Rules: LPG Subsidy To Be Stopped In 7 Days? Know Everything

Many citizens are reportedly receiving messages related to their LPG subsidy. Amidst hiking prices, extending the lock-in period for LPG refills, banning dual connections, and promoting the switch to PNG, the government has likely started to identify consumers who are receiving a subsidy on their domestic LPG cylinders despite having a family income of more than Rs 10 lakh per annum. These customers are receiving SMS to respond to the oil marketing companies within 7 days. Failure to do so will lead to the shutdown of the LPG subsidy.

What Is LPG Subsidy?

The government launched the PAHAL (Direct Benefit Transfer for LPG) scheme, which offers a subsidy to customers on their domestic LPG purchase.

This subsidy is given on the purchase of domestic LPG cylinders of 14.2 KG and 5 kg. Currently, OMCs like Indian Oil, BPCL and HPCL give subsidies on the purchase of Indane Gas, Bharat Gas and HP Gas.

At present, the citizens who have applied for PAHAL receive a subsidy of Rs 24.50 per cylinder that is delivered at home.

According to the government's myScheme website, the scheme ensures transparency by transferring LPG subsidies directly to consumers' bank accounts, which eliminates diversion and reduces leakages. It empowers users, improves delivery, and enables self-selection for subsidies, with provisions for Aadhaar-linked and non-Aadhaar-linked accounts. This initiative protects consumer entitlement, prevents fraud, and promotes efficient subsidy management.

Why Will the LPG Subsidy Be Stopped In 7 Days?

According to Taxscan, Oil Marketing Companies (OMCs) have started verifying LPG subsidies based on the income tax records. The consumers whose gross taxable income or that of their spouse crosses Rs 10 lakh are receiving text messages. These messages ask them to respond within seven days if they want to dispute the tax department's findings.

The text message says, "As per available income tax records, your (or a linked family member's} gross taxable income exceeds the prescribed limit of Rs 10 lakh. If you wish to dispute this, please contact the toll-free number 1800-2333-555 or, register your grievance on the portal of your respective Oil Marketing Company within seven days of receipt of this message. If no response is received within the stipulated period, the LPG subsidy may be discontinued thereafter."

The reason behind the text message is because LPG subsidy's one of the biggest eligibility criteria is that the customer can enjoy the benefit only if their household income is less than Rs 10 lakh.

LPG Subsidy Eligibility:

1. To receive LPG subsidy, the applicant should be a domestic LPG consumer and should have an active LPG connection.

2. Under the Income Tax Act, 1961, consumers and their spouses should have income below Rs 10 lakh in the preceding financial year to avail the LPG subsidy benefit.

3. Since January 2016, LPG subsidy benefits will not be given to those whose taxable income is more than Rs 10 lakh.

4. You must ensure that your LPG connection is linked with both Aadhaar and bank account for receiving the subsidy.

5. Also, for Direct Benefit Transfer (DBT) under PAHAL, Aadhaar is mandatory to be linked with bank account.

6. Notably, customers who do not have an Aadhaar can also join the scheme by just submitting their bank account details to LPG distributor.

LPG Subsidy Documents Requirement:

- Form 1 - Submit a copy of the Aadhaar letter to the LPG distributor or bank

- Form 2 - Aadhaar letter along with residential proof, to be submitted to the LPG distributor

- Form 3 - A copy of a current refill slip consisting of a 17-digit LPG ID number

- Form 4 - A copy of a bank passbook's front page and a canceled cheque

How To Get LPG Subsidy Under PAHAL?

After becoming a user under PAHAL scheme, the process of receiving LPG subsidy is simple.

The consumer books domestic LPG cylinder at the market price. Then after receiving the delivery, the OMCs will credit the subsidy amount directly to the linked bank account.

As per ClearTax, there are options to receive LPG subsidy under PAHAL. These are:

Option I (Primary): If the Aadhaar number is available, it will be the medium of cash transfer. Thus, an LPG customer must link an Aadhaar Number with the bank account number and the LPG consumer number.

Option II (Secondary): If the LPG customer does not have an Aadhaar number, then he/she will directly receive the subsidy in his/her bank account without the need for an Aadhaar number. Under this option, the customer can give his/her bank information (account number/bank account holder name/IFSC code) to the LPG distributor for capture in the LPG database or can give the LPG consumer information (17 digit LPG consumer ID) to his bank.