The official sources have mentioned that petroleum products and continuation of their VAT attraction will be soon decided by the GST council as cleared by the Maharashtra Minister Deepak Kesarkar to the legislative council. For the reason, he mentioned that even the centre can not levy goods and service tax of 25 percent on the petroleum products as he was addressing Maharashtra Goods and Service Tax Laws (levy, amendment, and validation) Act 2017 in the Upper House.
The minister is also the presenter of State for finance and planning and he also stated the reasons for not qualifying the tax rate on diesel as to protect the inflation over various consumer goods like vegetables, fruits, food grains and other products. He also said that diesel is mainly used by the transport vehicles which in turn will make these commodities expensive if any slight pressure of tax is imposed on the diesel. He further added that, “The tax structure under the GST regime will be reviewed by the GST Council after five years.”
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The imposition of VAT on petroleum is the same reason for not imposing any tax on diesel just to counter the burden of diesel from the medium of petroleum VAT. He further added that tax on agriculture income will not be levied and it will be in zero percent bracket. While the issues over the recovery of unpaid revenue dues after GST comes into effect on July 1, he cleared that the Act provides for savings and validation clause that takes care of recovery of unpaid dues. “The revenue of state will rise as more people are brought under the GST regime.” as he added. After which, the concerned house cleared the tax laws bill which was earlier passed by the legislative assembly on May 20, 2017.
