New Delhi, Dec 14 - Even if petroleum products are brought under Goods and Service Tax regime, central and state governments will be free to levy taxes over and above the GST slabs, Bihar's Deputy Chief Minister Sushil Modi said on December 14.
"... I want to clarify one thing -- in whichever country the petroleum products are part of the GST, they are in the highest tax slab, and the states and Centre are free to levy taxes over and above the GST rates. It is the case everywhere in the world," said Modi, who is the Bihar Finance Minister and a member of the GST Council.
"People feel if petroleum products come under the GST, the highest tax will be 28%. But since 40% of the state and central revenues come from petroleum products, they will have the liberty to levy taxes over and above the GST rate," Modi said at FICCI Annual General Meeting here.
He said the GST Council was discussing the issue of bringing electricity, real estate, and petroleum under the GST ambit in coming days.
The Bihar Deputy Chief Minister said that whenever the GST Council decided, petroleum products would become a part of the GST without any need for a constitutional amendment.
He said that revenue from petroleum products would not get reduced under the GST but "it would be around the same amount of taxation".
"Yet, if they come under the GST, it will benefit the industry and the people," Modi said.