According to Amitabh Kant, CEO of NITI Aayog, top renowned oil companies such as Reliance Industries want petroleum products must be brought under the Goods and Services Tax (GST) Regime. Recently, the meeting has been organized by the government regarding the inclusion of petroleum products under the new taxation system and there is an open discussion among the industry leaders of oil companies and Prime Minister Narendra Modi.
Presently, the Central Government imposing an excise duty of Rs 48 per litre on petrol, whereas states charging VAT lies in between 6% and 48 percent. Petroleum Minister, Dharmendra Pradhan, continually requested to the GST Council that petroleum and diesel should be included under the indirect taxation system.
At Present, petroleum, diesel, alcohol and natural gas are outside the purview of GST. Mr Modi also focused on the significance of improved infrastructure in eastern India as well as north-east India. Besides, he requested to the oil companies must participate in biomass energy and coal gasification via joint ventures.
According to an official statement, “The PM thanked the Russian President Vladimir Putin and Rosneft…, for their support to India’s energy sector, and also appreciated the 2030 vision document of the Kingdom of Saudi Arabia.” By adding that, “Warmly recalling his visit to Saudi Arabia, Mr Modi said many progressive decisions are being taken there in the energy sector. He looked forward to various opportunities for cooperation between India and Saudi Arabia in the near future. ” The PM said that “as India moves towards a cleaner and more fuel-efficient economy, he wants its benefits to expand to all sections of the society, and, in particular, to the poorest.”
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Besides Petroleum Minister Dharmendra Pradhan, Rajiv Kumar, Vice Chairman of NITI Aayog, officials from giant oil companies Rosneft, Exxon, Saudi Aramco and BP attended the meeting. Reliance Industries Chairman Mukesh Ambani also attended the meeting.
According to Amitabh Kant, CEO of NITI Aayog, it is expected that the demand for oil in India will rise to 7.5 million barrels per day (bpd) by FY30 as against 4.5 million bpd in 2016, enhancing its demand in the market from 4.65% to 6.8% across the globe. It is anticipated that the consumption of gas in India will rise to 100-110 billion cubic metres (bpc) by 2030 as compared to 1.2 billion cubic metres in 2015.