Himachal Pradesh has successfully implemented Direct Benefit Transfer for LPG consumers (DBTL) and till date the State has successfully transferred LPG subsidy worth Rs. 62.5 crore to the respective accounts of consumers. Himachal has become the first State to implement this scheme.

The State Government has introduced Direct Benefit Transfer for LPG consumers of ten districts of the State, excluding two tribal districts, where consumers were getting LPG cylinder at full market rate and the differential between subsidized rate and market rate, i.e. subsidy was being transferred directly to bank accounts of the consumers under Direct Benefit Transfer for LPG consumers.

The state Government also removing the disparity in VAT being charged from DBTL consumers and non-DBTL consumers, thus the State Govt has approved amendment under Rule 17 of H.P. VAT Rules, 2005 vide which VAT has been exempted on the amount of subsidy borne by the Centre Government towards sale price of domestic LPG cylinders under the DBTL scheme.

This would bring parity in VAT component to be borne by the Direct Benefit Transfer for LPG (DBTL) consumers as well as Non-DBTL consumers.