Council to decide on gas, ATF: Adhia

New Delhi, June 26: Days before the GST completes one year, the government on Tuesday said natural gas and jet fuel (ATF) are ‘natural’ and ‘easier’ candidates for inclusion in the indirect tax regime.

In an interview to PTI, Hasmukh Adhia said the call for including the two in GST would be taken up by the regime’s highest decision making body GST Council. He, however, did not say if it would be on the agenda for the next meeting on July 21.

Since its launch last year, the government has cut tax rates on a slew of goods and services as well as simplified rules

The government is planning a mega event to mark the first anniversary of GST roll out on July 1 with participation of industry chambers, traders, and tax officials, besides, finance minister Piyush Goyal.

in an attempt to rationalise the regime that reshaped India’s industrial landscape as it widened the country’s tiny tax base, removed myriad middlemen, vanquished border checkposts, freed up internal trade and made it easier to do business. But, the challenge has been to bring cash cows crude oil, natural gas, petrol, diesel and ATF under GST. Oil yielded maximum revenue for both governments, and none seemed to want to let go of it.

While prevailing rate, made up of central excise duty and state VAT on petrol and diesel, is way beyond the 28 per cent peak tax rate under GST, tax incidence on natural gas and ATF is low enough to get fitted into one of the 5, 12, 18 and 28 per cent GST tax bracket. “We are conscious that there are certain items which are not part of GST. As and when there is a discussion on these items in the GST Council, the Council will take a call on it,” Adhia said.