The government is prepared to draw the petrol and diesel under the GST ambit given that the states would have agreed on the same mentioned by the Petroleum and Natural Gas Minister Hardeep Singh Puri.
The minister sees that various countries in the world are facing the fuel shortage and higher rises in cost however there would be no shortage of fuel in the country.
“For bringing the petrol and diesel under the GST, the states have to agree. If the states make the move, we are ready. We have been ready all along. It is another issue how to implement it. That question should be addressed to the finance minister,” when the cost of the fuel gets rises in the domestic market, the demand to draw down the petroleum products beneath the GST regime arrive.
It is considered that the cost of petrol and diesel drops when the same comes beneath GST. But the states do not keen to draw the same beneath the GST ambit since the same is directed to provide the correct and fixed indirect tax rates on the sale of petroleum products.
A bigger amount of tax would be earned by the Centre and states via petroleum products. The centre has taken Rs 3.63 lakh cr through charging the excise duty on these products in FY 2021-22. Rs 2.56 lakh cr would be earned through the VAT/sales tax on these products. When the products of petroleum come beneath the GST then the states would not able to manage the sales tax or VAT rates according to the requirement of their revenue.
A rise in the price of petroleum products would be seen From July 2021 to August 2022 with 43% to 46% in the US and Canada, but in India, the same has witnessed only a 2% rise in this period, ministers articulated also they said that “When many countries are witnessing a shortage of fuel and price rise, there is no shortage of fuel in India even in the remotest corners of the country,”
