Petrol & diesel to come under GST once states agree
Currently, petrol and diesel attract VAT, Central Sales Tax and Central Excise Duty.
Finance Minister Nirmala Sitharaman, has stated that petroleum products like petrol and diesel would come under the ambit of Goods and Services Tax (GST) once the states agree.
“The provision is already available for petroleum products to be brought into the GST. My predecessor had already made the window kept open,” Sitharaman said. “Once states agree, we will have the petroleum products also be covered under the GST. So that’s not so much of us not wanting it,” she added.
The industry has been demanding the government to bring petroleum products under GST ever since the new tax regime was rolled out in July 2017. While analysts say that it will help control inflation and promote industrial growth, it has been a contentious issue.
Most goods and services in India are covered under GST, except for petroleum products like petrol, diesel, ATF and natural gas, which still attract VAT, Central Sales Tax and Central Excise Duty. However, the final decision to bring these products under the ambit of GST rests on the GST Council.
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