Minister for Petroleum, Natural Gas and Steel Dharmendra Pradhan has urged the Goods and Services Tax (GST) Council to bring petroleum products under GST as soon as possible.
Currently, petroleum products attract the central excise duty and value added tax (VAT) levied by the states.
In an exclusive interview with ANI, the Minister said: “From day one I have been requesting the GST Council to bring petroleum under the purview of GST. We are constantly requesting the Council and again today I am requesting the GST Council to consider our demand.”
The minister’s appeal came amid a record high in the national capital on Tuesday after a temporary halt in the national capital following a sharp rise in petrol and diesel prices. While the price of petrol was increased by 25 paise while the price of diesel was increased by 35 paise. Petrol price has gone up in Delhi ₹90.83 per liter and the rate of diesel increased ₹81.32 per liter.
The minister said that if the GST Council decides to bring petroleum products under the purview of GST, it will provide a big relief to the common man. It will also be very helpful for the development of the oil and gas sector.
“We are constantly requesting the GST Council to include petroleum products under its purview as it will benefit the people. But their solution is theirs,” he said.
The GST Council is a supreme member committee to amend, compromise or purchase any law or regulation based on the GST Council. The Council is headed by Finance Minister Nirmala Sitharaman, assisted by the Finance Ministers of all the states of India. The next GST Council meeting is scheduled for March.
In addition, the minister also praised a number of projects ₹Prime Minister Narendra Modi launches Rs 3,000 crore in Assam, saying he will increase regional employment opportunities and income.
“Consumer prices for petrol and diesel have risen due to the rise in crude oil prices in the international markets. This will gradually soften,” the minister said. The minister added that Kovid-1 to had reduced the global supply of oil, which had affected production.
He also highlighted that 32 per cent more expenditure has been provided in the sector as compared to last year’s budget.
Referring to a letter written by Congress interim president Sonia Gandhi to PM Modi, the minister said: “Sonia must know that Rajasthan and Maharashtra have maximum taxes. Central and state revenues were negligible during the lockdown. . ”
Earlier this month, Sitharaman said in Kolkata that GST would be levied on petroleum products after the states and the GST Council agreed to bring the products under GST.
Addressing the media, Sitaram said, “It is up to the state and the GST council to call whenever they want.” He also said that former Union Minister Arun Jaitley had made provision in the GST and included petroleum products in the GST list, but with zero rate.
“In other words, petroleum products are included in the GST, but no tax is levied on it. The rate will be fixed and added to the rate (on products) when and when the GST Council orders,” the finance minister added. Ready to bring under GST, no second amendment will be needed.
Currently, petroleum products attract central excise duty and VAT levied by the states. While industry captains have repeatedly pressured the government to bring petro products under GST, states have not been keen on the idea as they rely heavily on VAT for their revenue.