Union Minister Nitin Gadkari, on Thursday (November 11), shared an idea on how taxes on petrol and diesel can be further slashed. The minister known for his unique ideas said that if petrol and diesel are brought under the Goods and Services Tax (GST) regime, then taxes on petroleum products will reduce further. “We have a plan that if petrol and diesel are brought under the GST regime, then the taxes on petrol and diesel would come down. This will also help in curbing corruption,” Gadkari said in New Delhi.

The GST council, which is chaired by Union Finance Minister, Nirmala Sitharaman, has taken up the issue of bringing petroleum products under the ambit of GST. The council is working to create a consensus before taking up the issue with the states. It is also discussing the possibility of bringing petrol and diesel under the GST regime. Gadkari said that states would be given compensation if they lose revenue on petrol and diesel after they are brought under the ambit of the Goods and Services Tax (GST).

The Goods and Services Tax (GST), a single indirect tax for the whole country, will be implemented from July 1. The GST will subsume a host of levies like excise duty, service tax and VAT. The government has already said the prices of petrol and diesel will be cut by at least Rs 5 per litre. In the summit, the Union Minister for Road Transport and Highways, Shipping and Water Resources, River Development and Ganga Rejuvenation, Nitin Gadkari said that the prices of petrol and diesel will come down after the implementation of the GST. He said the price of petrol and diesel will come down by a rupee a litre after the GST implementation. He said the Central government wants to bring petrol and diesel under the ambit of the GST so that the prices of these two products can be reduced.

“If petrol and diesel will be brought under the GST regime, then taxes on these products will be reduced and revenue of both the Centre and the states will increase,” he was quoted as saying by News Agency PTI.

However, this isn’t the first when someone has proposed bringing petrol and diesel under the GST regime. Early this year, the GST Council headed by Finance Minister Nirmala Sitharaman discussed the matter on the directions of the Kerala high court. The council decided not to bring petrol and diesel under GST.

Bringing petrol and diesel under the GST regime could reduce the petrol prices which were at their record highs before the Centre recently reduced the excise duty on the two petroleum products.

Resources : The times of india

Related Post