GST Council Might Consider Bringing Petroleum Products Under GST Ambit In Phases, Says AdhiaHasmukh Adhia. (Pradeep Gaur/Mint via GettyImages)

Petroleum products including petrol, diesel, natural gas, crude oil, and aviation fuel that are currently under the ambit of state taxes may soon be included under the goods and services tax (GST). Finance Secretary Hasmukh Adhia has said that the GST Council may soon consider the proposal, and, if accepted, it would be implemented in phases, reports Mint.

Chairman of the Central Board of Indirect Taxes and Customs S Ramesh said that the GST Council would have to finalise the modalities required given the demand for petroleum products to be brought under the GST umbrella. Due to the current situation, states have the right to impose additional value-added tax (VAT) on these products.

The Civil Aviation Ministry has, on more than one occasion, pointed out that high taxes were a burden on the sector since fuel constitutes a sizable expenditure for airlines and also impact fares. It had written to the Finance Ministry asking for aviation fuel to be included under GST along with complete input tax credit as soon as possible. The Finance Ministry has, in turn, shown intentions of conceding while also bringing natural gas under the new tax regime.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement