There is a twist on GST on Petroleum Products. We all expect that it will come under GST in no time but now, Union Finance minister said that the Goods and Services Tax (GST) will be applied on petroleum products once the states and the GST Council together agree to bring the products under the purview of GST.
Former union minister Arun Jaitley had made a provision in the GST and included petroleum products in the GST list but with a zero rate. Petroleum products have been included in the GST but with no tax on it. As now, the petroleum products attract central excise duty and value added tax (VAT). This tax is levied by states. While industry have repeatedly pressed the government for bringing petroleum products under GST, states haven’t considered this because of their dependence on VAT and Excise duty revenue.
Finance minister Sitharaman attended two sessions which includes one session with trade and other with industry representatives, followed by another with economists, academicians and policy experts, before addressing the media. Government was keen on having continuous engagement with industries and businesses and wanted to play the role of a facilitator so as to provide hassle free payment of taxes to taxpayer.