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.
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