‘Petroleum products to be brought under GST ambit gradually’
Union minister of finance Arjun Ram Meghwal on Saturday said petroleum products presently out of the GST ambit will also be brought under its purview gradually in future.
Taking meeting of the central GST, state GST, traders, manufacturers and other stakeholders in Kota, Meghwal said that five petroleum products — crude oil, high speed diesel, aviation turbine fuel (ATF), natural gas and motor spirit — are currently out of the GST Mandi as the union government wanted to develop consensus among the states over the commodities before bringing them under the GST ambit.
“These five petroleum commodities will also be brought in the GST ambit gradually so that the country can effectively have one nation one tax enforced,” he said. He added that presently petroleum products have not been included in the GST due to tax recovery issues with the states.
Meghwal said presently value added tax (VAT) and excise tax are levied on the petroleum products instead of the GST, which has been launched from July 1.
However, about other commodities like alcohol, electricity, mandi tax and royalty tax, which are also exempted from the GST at present, he said that these products will continue to remain exempted from the GST and state governments would recover such taxes.
Meghwal said, “GST is a step in the direction to end parallel economy, which was against the country's economy.”
According to the World Bank, there was existence of around 23% dummy economy in the country. GST will develop corruption-free economy in the country, he said.
Meghwal said the union government has deployed 180 IAS officer and 40 Union ministers for review and feedback on GST. “Feedback from the stakeholders of GST including organisations of consumers, traders and manufacturers and service sector are being taken about GST.”
He said the traders of Kota stone, cotton and cattle feed have met him in Kota seeking relaxations in GST, about which clarifications would be sought. On the demand of Khadi manufacturers and traders to withdraw GST on Khadi, he said that the Khadi commission and other delegations of Khadi traders have represented them and the matter is under consideration before the GST Council.