The central government may probably bring petrol and diesel under the purview of GST. Online media reports, quoting people related to the matter, were told that a ministerial panel on GST will consider taxing petroleum products under a national rate, which will increase consumer prices and government revenue. The doors to potentially big changes will open.
According to the report, on the condition of anonymity, these people told that the panel headed by Finance Minister Nirmala Sitharaman will examine the proposal in its meeting on Friday. Earlier a court had also asked to consider it. However, there is no official statement from the Finance Ministry or its spokesperson yet.
Any change in the GST system would require approval from three-fourths of the panel, which would include representatives from all states and territories. However, some of them have opposed the inclusion of fuel in the GST system, as they believe that it will pass an important revenue generating product of the state into the hands of the central government.
The move is expected to help soften the prices of petrol and diesel, which had hit record levels in recent months due to taxes imposed by the central and state governments.
Diesel and gasoline consume more than half of the country’s fuel. Taxes account for more than half of the cost of fuel in the country.
These people said that in its meeting on Friday, the GST panel has also planned to consider giving concessions for another three months till December 31 on certain drugs used in the treatment of Covid-19. He said that the government will also present the option to states to compensate their GST losses after next year.
CNBC-TV18 reported that the panel may also consider increasing the GST on certain renewable equipment to 12% and iron, copper and other metal ore and concentrates to 18%.
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