Finally, the matter of petrol under GST has reached to the almighty Rajya Sabha of India in which during the ongoing Rajya Sabha session, Dharmendra Pradhan, the Minister of Petroleum & Natural Gas, confirmed that the Central government and the Industry are in favour of bringing petroleum products under the GTS ambit.
However, the final decision on the matter is within the rights of the GST Council which is scheduled to meet on August 4. The Petroleum Minister’s comments could be a hint towards a possible decision on the long-debated matter.
Reportedly, GST is not applicable to Five petroleum products– petrol, diesel, natural gas, crude oil, and ATF. The Petroleum Minister while answering to queries on the matter in the Rajya Sabha during the question hour said,”Whatever the GST Council decides on including petroleum products within GST ambit, we would stand by that”.
Read Also: Revised GST Rates As Finalized by the GST Council Meeting
He also informed that his Ministry and the Government of India in principle would like to see GST levied on petroleum products. However, the final call on the matter would be taken by the GST Council after a thorough consideration at an appropriate time.
Mr Pradhan also shared that the initial framework of GST did subsume all petroleum products. However, its implementation was a matter for the states to finalize. “But all states were of the view that their (tax) slabs and (implementation) dates would be decided by them,” he said. Presently, all states enjoy autonomy on deciding the tax on fuel. Bringing petroleum products within the GST would result in a uniform price for such products across the country.
Further, on the subject of GST on Aviation Turbine Fuel (ATF), the Petroleum Minister reminded that the GST Council’s decision would be final.
What is Expected in The 29th GST Council Meet?
The 29th GST Council Meeting is on August 4 which will be seen as an important moment in the GST regime as concrete decisions could be taken towards rate rationalization. Major relief for SMEs which include reducing the 28% luxury tax slab on consumer products as well as GST on Petroleum products could be announced post the meeting. This would rationalize pricing and prove to be a major relief for common man and farmers.
