Centre in favour of GST on petroleum products, says FM
Transition will materialise once states are on board, Jaitley says in response to Chidambaram in Parliament
The Centre is in favour of bringing petroleum products under the goods and services tax (GST) regime, but is waiting for a consensus to emerge among states, finance minister Arun Jaitley said on Tuesday.
“As far as the central government is concerned, we are in favour of bringing petroleum under GST. Let me categorically state this. But we would await the consensus of the states and I do hope at some stage, sooner or later, the states agree to bring this inside GST,” Jaitley said in the Rajya Sabha.
He was responding to a question by former finance minister P Chidambaram, who wanted to know the position of the Bharatiya Janata Party (BJP)-led central government on the inclusion of petroleum products under the new indirect tax regime.
“Now that the BJP is in power in 19 states and is in power at the Centre, what prevents the central government from moving the GST Council to decide that petroleum products should
We are in favour of bringing petroleum under GST. Let me categorically state this. But we would await the consensus of the states ARUN JAITLEY, finance minister
immediately be brought under the GST?” Chidambaram asked.
At present, petroleum products are included under GST, in line with amendments to the constitution. But GST will start to be levied on petroleum products only once the GST Council — the representative body comprising the Union finance minister and state finance ministers — approves the move. Any decision in the Council needs the support of three-fourths of the members.
The central government has onethird voting share and the state governments the remaining. Till date, all decisions in the GST Council have been taken by consensus and without any voting.
“After a great deal of consultation, we persuaded the states to agree to bring petroleum within the GST itself at least in the constitution amendment. The states reluctantly agreed to do so,” Jaitley said.