Recently, Petroleum and Natural Gas Minister Mr Hardeep Singh said that the Centre is ready to bring petrol and diesel under the Goods and Services Tax (GST). He also stated that this move is unlikely as states won’t agree to it as liquor and energy are their highest revenue-generating items. However, he clarified that whenever the states are ready to implement this move, the Centre is ready to move ahead.
Mr Hardeep Puri also stated that
- States shall agree to bring petrol and diesel under the GST.
- The Centre has been ready for this move for a long time.
- The finance minister shall address the implementation issues of this decision.
- It can be understood the states generate major revenue from liquor, petrol and diesel sales.
- The Central government is worried about inflation and other relevant factors.
- Kerala High Court suggested these issues be placed before the GST Council.
- The finance ministers of the states had differing views on this decision.
- The GST decisions shall be taken after mutual discussions as we work in a cooperative federal system.
- Also, India has seen the lowest increases in the past year.
- In India, fuel prices increased by 2% only last year compared to 43% in North America.
- He also pointed out that IMF & Morgan Stanley states that India is the bright spot for the world.
For any clarifications/feedback on the topic, please contact the writer at dvsr.anjaneyulu@clear.in
DVSR Anjaneyulu known as AJ, is a Chartered Accountant by profession. Loves to listening to music & spending time with family and friends.
