People are upset with the increased oil prices. Due to which there has always been a demand that it should also be brought under the purview of GST to control the prices of petrol and diesel. Finance Minister Anurag Thakur said on this whole issue that if any proposal comes then the government will definitely discuss it.
In an interview to Times Now, Minister of State for Finance Anurag Thakur said, “Both the Center and the state are stakeholders in the tax on petrol-diesel. As far as it is concerned to bring it under the purview of GST, there is a case pending in the GST Council. No … but if the states want to discuss this in the upcoming GST Council meeting, we will welcome it with an open mind “Earlier Finance Minister Nirmala Sitharaman had also talked about discussing it in the GST Council.
Why is there demand
If petrol and diesel are kept at a high rate of GST, then the current prices can be reduced to half.
If the GST Council opted for a lower slab, then prices could come down.
There are four primary GST rates in India – 5 percent, 12 percent, 18 percent and 28 percent.
If petrol is kept in a 5 percent GST slab, it will be Rs 37.57 a liter across the country and the diesel rate will be reduced to Rs 38.03.
If fuel is kept in 12 percent slab, then petrol price will be 40 percent and diesel will be 40.56 rupees.
If petrol comes in the 18 percent GST slab, then the price will be Rs 42.22 and diesel will be Rs 42.73.
At the same time, if the fuel is kept in the slab of 28 percent, then petrol will be Rs 45.79 and diesel will be Rs 46.36.
What is hitch
States are not ready to bring petrol and diesel under the GST regime. GST was implemented on 1 July 2017. Petrol and diesel were kept out of it at that time due to the high dependence of the states. If GST includes petroleum products, fuel will have a uniform price across the country.
