Nifty99000 100%

Sensex99000 100%

Article rating: 4.3
Article rating: 4.1
Article rating: 4.3
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: 4.0
Article rating: 4.0
Article rating: No rating
Article rating: 3.0


Centre open to bringing fuel under GST

Author: IANS/Saturday, May 26, 2018/Categories: Oil & Gas

Centre open to bringing fuel under GST

New Delhi, May 25 - With petrol and diesel rates rising daily, the Central government on Friday advocated bringing transport fuel under the GST to curb the price hike.

While Road Transport and Highways Minister Nitin Gadkari said that bringing petrol and diesel under the Goods and Services Tax (GST) will benefit the states, Finance Minister Piyush Goyal said if the GST Council decides to go for it, the Centre will welcome the move.

"Petrol and diesel should have been brought under the GST. I asked officials during a presentation if we bring fuel prices under GST will it benefit the states or not. They said 'yes', they will benefit," Gadkari said at a news conclave here on the four years of the Modi government.

Finance Minister Goyal said the government was concerned about the rise in fuel prices and the issue of bringing it under the ambit of GST had repeatedly come under discussion.

"There will be more discussion on the issue during the next GST Council meet. All decisions are taken with consensus among all states.

"If the Council decides to bring petrol and diesel under GST, the (Central) government will welcome it," Goyal said at the India News conclave.

He added that the government was also formulating a long-term comprehensive policy to address the issue of fuel prices.

The government was thinking of a policy which addresses the issue from the consumer point of view -- wherein they don't have to pay really high price for the fuel -- while also ensuring that government revenue from taxes on petrol and diesel does not shrink, Goyal said.

"We want a balance between the two since revenue from the tax funds various government welfare initiatives," he said.

"So the solution should ensure that development programmes continue while the consumer is also protected from the excessive burden due to high fuel prices," the Minister added.

Earlier, Gadkari said that states were wary of losing revenue on account of taxes they collect from fuel prices and liquor.

"It will be good if fuel prices are brought under GST. This will not only reduce the fuel prices but will also increase the government's revenue."

He, however, said it was his personal opinion and the ultimate decision regarding this remained with the Petroleum Ministry.

The Minister said fuel prices were surging because of international crude oil rate.

"Earlier, we were giving subsidy on the import (of fuels). When the rates came down, the subsidy was removed. We are part of a global economy... The price of petrol and diesel are increasing due to rise of their price in international rates."

He said the money that was saved from removing subsidy on fuel allowed the government to give free LPG connections to eight crore families across India.

Petrol prices across the four metros increased by over Rs 3 per litre in 12 days after dynamic pricing system was resumed on May 14.

Print Rate this article:
No rating

Number of views (308)/Comments (0)

rajyashree guha


Other posts by IANS
Contact author

Leave a comment

Add comment



Ask the Finapolis.

I'm not a robot
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest



The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free