LPG Subsidy Alert: Shock for those earning more than Rs 10 lakh, now LPG subsidy will stop; Government’s strict action started

The Central Government now seems to be adopting a very strict stance regarding LPG subsidy. If you are also taking benefit of subsidy on domestic LPG cylinder, then this news is very important for you. In fact, the government has started identifying those people who are taking advantage of government subsidies despite being financially prosperous. According to the latest update, the doors of subsidy are going to be closed forever for those families whose annual taxable income is more than Rs 10 lakh.

Petroleum companies have started work in this direction at the grassroots level and now such consumers are being alerted by sending SMS directly to their mobiles. This step of the government is clearly to ensure that the relief provided from the exchequer reaches only those who really need it. To make the system transparent and ensure proper allocation of resources, no relaxation is being given in this entire process.

Identification is being done from Income Tax data, Government is strict on LPG Subsidy Alert.

This time the government has taken the help of technology to identify ineligible people. According to sources and media reports, the Petroleum Ministry has prepared a digital verification system which is directly linked to the database of the Income Tax Department. Now the gas connection data is being matched with the consumer’s PAN card and the Income Tax Return (ITR) filed by him.

Recently, a Chartered Accountant (CA) shared a screenshot of a message sent by Indian Oil on social media, which has confirmed this entire exercise. In fact, the government is now not just looking at whose name the connection is in, but the combined income of the entire family is being kept on the radar. If the total taxable income of the family crosses the prescribed limit, the subsidy benefit will automatically stop.

7 days ultimatum and KYC issue

Consumers are being given clear warnings in the messages sent by companies. It is being told that if the consumer or any member of his family is above the prescribed income limit, then they will have to update their status within seven days. This strictness simply means that now it will be impossible to get subsidy by hiding information only on paper.

In fact, at the time of ‘PAHAL’ scheme, the government had made a rule that people with income more than Rs 10 lakh would not be entitled to subsidy. Although, initially through the ‘Give It Up’ campaign, people were appealed to voluntarily give up the subsidy, but now the government is in a mood to implement it compulsorily. The money saved from this digital data matching will be shifted to welfare programs like Pradhan Mantri Ujjwala Yojana so that the poor section can get more relief.

What should consumers do if the message comes?

If any notice has come on your registered mobile number to stop subsidy or update income details, then taking it lightly can prove costly. Experts say that such consumers should immediately contact their gas distributor or update their information by visiting the official portal of the concerned oil marketing company (like Indane, HP or Bharat Gas).

The thing to note here is that stopping subsidy does not at all mean that the supply of your cylinder will stop. In fact, home delivery of cylinders will continue as before. The only difference will be that you will have to buy the cylinder at the market rate and the subsidy amount coming back to your bank account will stop. This digital hunter of the government is a big warning to those who are taking advantage of government schemes in an illegal manner.