BJD MP Dr Sasmit Patra has urged Union Finance Minister Nirmala Sitharaman to put the subject of including petrol and diesel under the GST structure as a formal agenda item in the next GST council meeting.
In his letter, Patra cited Article 279A(5) of the Constitution, which authorises the GST council to suggest the date for charging GST on petroleum products. He said that the constitutional structure predicts eventual inclusion and that the current exclusion has formed interstate price inconsistency.
The situation of Odisha is shown by Patra, where VAT stands at 28% on petrol and 24% on diesel. Retail prices average Rs 101–102 per litre for petrol and Rs 92–94 for diesel. He specified an illustrative GST model at 28%, estimating petrol prices could be reduced by Rs 25 per litre and diesel by Rs 14 per litre.
Read Also: CII Seeks GST on Petroleum, Rate Rationalisation in FM Meet
He mentioned that the monthly consumption of a household is 60 litres of petrol, which can save nearly Rs 1500, translating to annual savings of Rs 18,000–19,000. Farmers and industries relied on diesel shall also benefit from reduced input and freight costs.
Meanwhile, Patra considered fiscal concerns. Odisha makes nearly Rs 9700 crore annually from VAT on petroleum, while from Odisha’s consumption, the Union excise revenue is nearly Rs 5,500–6,000 crore. The revenue of Odisha under GST can be reduced by nearly Rs 4500 crore, and Union revenue by Rs 3,000 crore.
For balancing fiscal stability with consumer relief, Patra offered a phased inclusion model, transitional compensation for states, and a calibrated GST rate structure. He outlined that structured deliberation shall make cooperative federalism stronger and enhance industrial competitiveness.
