In an interaction with industry leaders in Kolkata, Finance Minister Nirmala Sitharaman reiterated government’s view on including petrol and petroleum products under GST by saying, “It is already covered in the GST and the states have to decide when they want petrol and petroleum products to be taxed under GST.”
Crux of the Matter
The Finance Minister said that there is no need for any new amendment to include petrol under GST. It is upon the states and the GST council to agree on the rate and decide when to charge it from.
At the time of roll-out of GST, after deliberate discussions, a provision was made to include petroleum products in the new regime at zero percent.
Petroleum products have been placed under the GST due to the foresight of the late Finance Minister Arun Jaitley.
Finance Minister Sitharaman spoke deliberately addressing a variety of concerns faced by the industry at the post-Budget interaction organized by the Ministry of Finance in Kolkata.
Curiopedia
Goods and Services Tax (GST) is an Indirect Tax that came into effect from July 1, 2017. It has subsumed almost all the indirect taxes except few; multi-staged as it is imposed at every step in the production process, but is meant to be refunded to all parties in the various stages of production other than the final consumer and as a destination-based tax, as it is collected from point of consumption and not point of origin like previous taxes. Goods and services are divided into five different tax slabs for collection of tax – 0%, 5%, 12%, 18%, and 28%. More Info
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