FM Nirmala Sitharaman clarifies on proposal to bring petrol, diesel, jet fuel, gas under GST
Amid fuel price hike, the Union Finance Minister Nirmala Sitharaman on Monday stated that there was no proposal as of now to bring petroleum including crude oil, petrol, diesel, jet fuel (ATF) and natural gas under the Goods and Services Tax (GST).
It may be recalled five commodities including crude oil, natural gas, petrol, diesel, and aviation turbine fuel (ATF) were kept out when the GST was introduced on July 1, 2017.
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Thus, the central government continued to levy excise duty on them while the state governments kept charging VAT (Value Added tax).
Taxes, with excise duty, have been raised periodically. Likewise, a spike in global oil prices led to a hike in fuel prices. Therefore, there have been demands to bring petroleum under GST.
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Nirmala Sitharaman, in the Lok Sabha, said that there has been no proposal, at present, to bring crude petroleum, petrol, diesel, ATF and natural gas under GST.”
There has been no recommendation in the GST Council for the inclusion of these goods under GST.
It may consider the issue of inclusion of these five petroleum products keeping in view all the relevant factors, she added.
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