New Delhi, March 15
Amid record-high fuel prices, Finance Minister Nirmala Sitharaman on Monday said there is no proposal as of now to bring crude oil, petrol, diesel, jet fuel (ATF) and natural gas under the GST.
When the GST was introduced on July 1, 2017, amalgamating over a dozen central and state levies, five commodities — crude oil, natural gas, petrol, diesel, and aviation turbine fuel (ATF) — were kept out of its purview given the revenue dependence of the Central and state governments on this sector.
Fuel Prices at all-time high
- When the GST was introduced on July 1, 2017, five commodities — crude oil, natural gas, petrol, diesel, and ATF — were kept out of its purview
- While the taxes haven’t come down, a spike in global oil prices on demand recovery has pushed petrol and diesel prices to an all-time high
This meant that the Central government continued to levy excise duty on them while state governments charged VAT. These taxes, with excise duty, in particular, have been raised periodically.
“At present, there is no proposal to bring crude petroleum, petrol, diesel, ATF and natural gas under GST,” Sitharaman said in a written reply to a question in the Lok Sabha. — PTI