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‘No GST on petrol and diesel yet’ – then the government said, why fuel is not being brought under the ambit of GST?

'No GST on petrol and diesel yet' - then the government said, why fuel is not being brought under the ambit of GST?

Petrol-Diesel and GST: There is no plan yet to bring petrol-diesel under the purview of GST. (symbolic picture)

New Delhi:

country in the last few years price of petrol and diesel (Petrol-Diesel Price) has increased indiscriminately. Today petrol and diesel are running at their all-time high. Petrol is running beyond Rs 100 per liter in most of the states of the country and diesel is also lagging behind, so for a long time there has been a need to bring petrol-diesel under GST i.e. Goods and Services Tax Act (Petrol-Diesel under GST). There is demand. The debate is also because when the GST was being implemented, there was talk of bringing oil and gas under its ambit. Analysts have also suggested to take this route to control the prices of petroleum products, but the government is not showing any such intention on it.

Right now the government said again on Monday that it has no plans to bring petrol and diesel under the ambit of GST. He also said that till now the GST Council has not recommended the inclusion of oil and gas in the purview of GST.

Minister of State for Petroleum and Natural Gas Rameshwar Teli in Lok Sabha. This information was given in written reply to the question of members like Muraleedharan, Bhartrihari Mahtab, Supriya Sule and Saugata Roy etc. The members had asked, ‘Is there a plan to bring petroleum products under GST to control the prices of diesel, petrol?’ The minister replied, “At present there is no plan to bring these products under the purview of GST. So far, the GST Council has not recommended the inclusion of oil and gas in the purview of the Goods and Services Tax (GST).

Four Years of GST: Single tax slab, 10 big goals like saving states from deficit yet to be achieved

There has been opposition from the government in the past too.

During the budget session this year, BJP MP in Rajya Sabha Sushil Kumar Modi, while participating in the discussion on the Finance Bill, 2021 in the Upper House, had said that the Center and the states collectively get five lakh crore rupees on petroleum products. Describing this demand as impractical, he had said that it will cause a loss of about two lakh crore rupees to the states and how will it be compensated.

SBI Economist’s report….

…. came in March, in which it was said that if petrol is brought under the ambit of GST, then its retail price can come down to Rs 75 per liter at this time and the price of diesel will also come down to Rs 68. Can come on litre. Due to this, the central and state governments will lose only one lakh crore rupees, which is 0.4 percent of the GDP. In this calculation, the price of crude oil in the international market was assumed to be $ 60 per barrel and the dollar-rupee exchange rate was considered at Rs 73 per dollar.

Note that this Report first week of March is of. At that time, the price of petrol in Delhi was Rs 91.17 per liter and the price of diesel was Rs 81.47 per liter. And today petrol is being sold at Rs 101.84 per liter and diesel at Rs 89.87 per liter in the capital.

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SBI Economist had said in its report that the prices of petroleum products in India from India to central and state level taxes and tax-on-tax remain among the highest in the world. Let us tell you that at present, every state levies Value Added Tax (VAT) on petrol, diesel according to its requirement, while the Center levies excise duty and other cess on it. It was said in this report that “the central and state governments are not inclined to bring crude oil products under the purview of GST as levying sales tax, VAT etc. on petroleum products is the main source of tax revenue for them.” Thus, there is a lack of political will in this matter so that crude oil cannot be brought under the purview of GST.

(with input from language)

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