If petrol is brought under the purview of Goods and Services Tax (GST), then its Retail price Even at this time, it can come down to 75 rupees per liter. SBI Economist said this in an analytical report on Thursday. The prices of petroleum products in India remain at the highest level in the world from India at the center and state level taxes and tax-on-tax. On bringing in GST, the price of diesel can also come down to 68 rupees a liter.
Due to this, the Central and State Governments will lose revenue of only one lakh crore rupees, which is 0.4 percent of GDP. This Ganna has been done by SBI Economist in which the price of crude oil in the international market has been considered at $ 60 per barrel and the dollar-rupee exchange rate at 73 rupees per dollar.
At present, every state imposes value-added tax (VAT) on petrol, diesel as per its requirement while the center levies excise and other cess on it. Due to this, the price of petrol has reached 100 rupees liter in some parts of the country. In such a situation, concern is being expressed about the high tax rate on petroleum products, due to which fuel is becoming expensive.
The SBI economist said that while implementing the GST system, it was said that petrol, diesel should also be brought under its purview, but this has not happened so far. By bringing the price of petrol and diesel under this new indirect tax system, their price can be relieved.
He says that, “Central and state governments are not willing to bring the products of crude oil under the purview of GST as the imposition of sales tax, VAT etc. on petroleum products is a major source of tax revenue for them. Thus, there is a lack of political will in this case, so that crude oil cannot be brought under the purview of GST.
Apart from the crude oil price and dollar exchange rate, the economist has kept the transport fare of Rs 7.25 for diesel and Rs 3.82 per liter for petrol, besides the dealer’s commission of Rs 2.53 in case of diesel and Rs 3.67 in case of petrol. Assuming a cess of Rs 30 on petrol and Rs 20 per liter on diesel, and a 28 percent GST rate that will be divided equally between the Center and the states, the Economist has estimated the final price on this basis.
It said that with the consumption increase of 15 percent in the case of diesel annually and 10 percent in the case of petrol, it has been assumed that bringing them under the ambit of GST can have a financial impact of Rs one lakh crore.
(This news has not been edited by the NDTV team. It has been published directly from the Syndicate feed.)