Modi government is ready to bring petrol and diesel under the ambit of GST, will there be a huge drop in the price of fuel?
Petroleum And Natural Gas Minister Hardeep Singh Puri said on Monday that the Modi government is ready to bring petrol, diesel and liquor under the ambit of GST. In such a situation, will the price of fuel come down in the coming days? If you are thinking like this then it is not right. Actually, the central government is ready, but the states will not be ready for this, because with this decision, they will have a big revenue i.e. revenue loss. Puri said in Srinagar that the consent of the states is necessary to bring petrol and diesel under the ambit of GST. If the states take initiative in this direction, then the center is also ready for it.
There has been a demand for bringing fuel under GST for a long time.
The demand for bringing petrol and diesel under the purview of GST has been rising for a long time. Despite this, there is no consensus between the state and central government on this matter. The Petroleum Minister expressed apprehension that there is little chance of a consensus among the states for loan to fuel under the purview of GST. The GAC Council meeting is expected to be held in the month of December. He said that the main source of revenue of the states is the tax on liquor and petroleum products. Why would the recipient of the main source of state revenue want to leave it? Only the central government is concerned about inflation and other things. Referring to the decision of the Kerala High Court, he said that the matter was suggested to be taken up in the GST Council but the finance ministers of the states did not agree to it. He said that as far as GST is concerned, we or your wishes have their place, we are part of a cooperative federal system.
After all, why not petrol and diesel in GST yet?
GST was implemented to fulfill the dream of one nation and one tax. Despite this, each state levies tax on petrol and diesel in its own way. Due to this, the rate of fuel varies from state to state. Now the question arises that why petrol and diesel have not been included in GST till now, then let me tell you that the revenue loss to the states is the main reason behind not bringing petrol and diesel under GST. State governments earn a lot of money by taxing petrol, diesel and liquor. Due to this, no state wants to bring petrol and diesel under GST.
