Plan for petrol and diesel to be brought under GST

The GST committee is planning to meet on Friday for talks to bring petrol and diel under its ambit. If the proposal is accepted the process for the two may reduce drastically for consumers in both central and state levels. The panel headed by Finance Minister Nirmala Sitharaman will be examining the proposal, due to Kerala High Court stating to take up the matter into discussion.

2021 was a year when petrol prices went up and many media reported that the prices could drastically go down. However there has been no comment from the ministry of finance and no information about the meeting has been disclosed. The proposal would only be approved if three fourths of the panel agree. This includes all states and union territories. The possibility for approval can’t be predicted as this could create a key revenue source for the central government when there are opposition parties that rule states.

When the GST was introduced in 2017, crude oil, petrol, diesel, natural gas and aviation tribune fuel (ATF) was kept out of the ambit as this creates a revenue source for both central and state governments. However, the Hindu reported that tax experts say this could bring both state and central revenue down. It was in June 12th that the previous council meeting where it was decided to reduce tax rates on various essentials till September 30th, due to Covid 19. Several essentials like Remdesivir and Tocilizumab, oxygen concentrators and medical oxygen were taxed under the Goods and service tax.

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