UPSC Articles
Petrol, diesel under GST purview
Part of: Prelims and GS III – Economy
Context The GST Council might consider taxing petrol, diesel and other petroleum products under the single national GST regime.
- Instead of GST, as of now, taxes like ‘Excise Duty’ and ‘VAT’ are being imposed on Petroleum goods like petrol, diesel, Air Turbine Fuel (ATF), natural gas and crude oil
- When GST was implemented in 2017, States did not allow these goods to be included in GST, because they were getting huge revenues (through VAT) on these goods.
- They thought that if these petroleum goods were included in the GST, then they would lose the freedom to decide the tax rate on these goods.
- So, at that time it was agreed that within 5 years i.e. by 2022, these petroleum goods will be included in GST.
About GST Council
- The GST Council is a constitutional body established under Article 279A of Indian Constitution
- It makes recommendations to the Union and State Government on issues related to Goods and Service Tax (GST).
- The GST Council is chaired by the Union Finance Minister.
- Its other members are the Union State Minister of Revenue or Finance and Ministers in-charge of Finance or Taxation of all the States.
News source: TH
