Nepal Oil Corporation (NOC) has instructed all LPG companies operating in the country to make sure VAT bills are provided whenever cooking gas is sold through their authorised dealers and retailers.
The directive follows reports that some LPG companies were supplying gas cylinders without giving customers invoices. On Monday, NOC’s LPG and Aviation Department sent a letter to all LPG companies, asking them to ensure their businesses comply with the applicable rules.
The requirement is intended to make the cooking gas sector more transparent, protect consumers and deter fraudulent activity.
NOC Acts After Reports of Missing Invoices
NOC said it had received complaints that “appointed dealers of gas companies are not issuing invoices”.
In response, the LPG and Aviation Department told gas companies to “ensure that a mandatory VAT bill is issued by the authorised sales network”.
Each company is responsible for making sure its dealers comply with the requirement.
The latest circular was signed by NOC Director and Engineer Binitmani Upadhyay.
Similar Directives Issued Previously
Reports indicate that NOC contacted the relevant association on August 14, 2024, and January 23, 2025, asking it to ensure the rule was followed and that dealers and retailers were properly regulated.
The latest notice serves as a further reminder that VAT invoices are required.
Why VAT Bills Matter
A VAT bill records a transaction and gives consumers proof of their purchase. Requiring sellers to provide invoices can therefore help customers verify what they have bought.
Keeping proper invoices can also make sales easier to track and help prevent practices such as cash in hand transactions.
NOC says the requirement is intended to improve transparency in LPG distribution.
Consumers buying cooking gas should ask for a VAT bill.
What Happens Next?
Under the new instruction, LPG companies must ensure their authorised dealers and retailers issue VAT bills. How this is carried out will depend on each company’s distribution network.
The notice does not specify any new fines or enforcement timetable, but reiterates that invoices must be issued.
The effectiveness of the directive will depend on how closely gas companies monitor their dealers and retailers.
By reinforcing the requirement for mandatory VAT bills, NOC aims to strengthen accountability in the LPG trade.