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Petrol, diesel under GST purview

  • IASbaba
  • September 15, 2021
  • 0
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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 

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