Preparation to include gas in GST No consideration on petrol-diesel

New delhi date. Monday, August 3, 2020

The government pushed back the issue after several states pushed for the exclusion of petrol and diesel from the GST, but it was learned that all preparations have been started to include gas in the GST.

The government had also started preparations after the states responded positively to the issue in the initial discussion. The Union Petroleum Ministry had sent a letter to the Finance Ministry on the matter. However, the final decision will be taken at the GST Council meeting. The government intends to start implementing it by the end of this year.

According to Petroleum Ministry sources, he had expressed readiness in talks with the states to include petrol and diesel in the GST. Although initially opposed, in the end all the states agreed. The objection to the inclusion of petrol and diesel is also due to the fact that the coffers of almost all the states are empty.

Revenue from petrol and diesel is the biggest source of revenue for the states as industrial activities have come to a halt.

States, on the other hand, are being told that gas cannot be released without being included in the GST. Otherwise the work will not go ahead. There is also news that preparations are in full swing across the country for laying pipes to deliver gas from house to house. This work has been carried out very quickly. Given the way VAT is currently levied differently on gas in each state, VAT will not be levied on the pipeline. The states have also understood this. If all goes well, the price of gas will be the same across the country.

According to a Petroleum Ministry source, the work is essential to strengthen the gas-based economy. It will boost the economy. Rising crude oil prices in the market have also pushed for the inclusion of petrol and diesel in the GST. In many states, 60 per cent of the total revenue comes from these two products.