No GST on petrol, diesel in near future as both Centre and states against idea Kerala floods: Kochi airport loss pegged at `220 crore Senco Gold files draft papers with Sebi to raise `600 crore via IPO

NEW DELHI: Petrol and diesel will not come under the purview of Goods and Services Tax (GST) in the immediate future as neither the Central government nor any of the states is in favour on fears of heavy revenue loss, a top source said on Tuesday.

When the one-nation-onetax regime of GST was implemented in July last year, five petro-products - petrol, diesel, crude oil, natural gas, and aviation turbine fuel (ATF) were kept out of its purview for the time being.

Though there have been talks in the industry and by some ministers, including by Oil Minister Dharmendra Pradhan and Road Transport Minister Nitin Gadkari, for the need to bring them under GST at the earliest to deal with volatility in prices, there is no immediate plans on the anvil to do so, the source, who wished not to be named, said.

The Union finance ministry, he said, has not mooted any proposal to bring petrol and diesel or even natural gas under GST but took up the issue at the last GST Council meeting on August 4 based on media reports.

"All states were opposed to the idea," he said.

If the two fuels are put under GST, the Centre will have to let go Rs 20,000 crore input tax credit it currently pockets by keeping petrol, diesel, natural gas, jet fuel and crude oil out of the GST regime. States, on the other hand, want to keep a revenue tool in their hand to meet any contingency like the floods in Kerala, he said.

The Centre currently levies a total of Rs 19.48 per litre of excise duty on petrol and Rs 15.33 per litre on diesel. On top of this, states levy Value Added Tax (VAT) - the lowest being in Andaman and Nicobar Islands where a 6 per cent sales tax is charged on both the fuel.

Mumbai has the highest VAT of 39.12 per cent on petrol, while Telangana levies highest VAT of 26 per cent on diesel. Delhi charges a VAT of 27 per cent on petrol and 17.24 per cent on diesel.

The total tax incidence on petrol comes to 45-50 per cent and on diesel, it is 35-40 per cent.

Under GST, the total incidence of taxation on a particular good or a service has been kept at the same level as the sum total of central and state levies existing pre-july 1, 2017. This was done by fitting them into one of the four GST tax slabs of 5, 12, 18 and 28 per cent.

For petrol and diesel, the total incidence of present taxation is already beyond the peak rate and if the tax rate was to be kept at just 28 per cent it will result in a big loss of revenue to both centre and states.

The source said there was no case for GST on CNG in near future as its sale is restricted in a few cities.

GST has been spoken of as a panacea for high fuel prices but there seems to be no consensus on bringing petro-products under the new regime in immediate future, he said.

After hitting an all-time high of Rs 78.43 a litre for petrol and Rs 69.31 for diesel on May 29, rates have marginally fallen during the subsequent days on softening in international oil prices and rupee strengthening against the US dollar. Petrol costs Rs 77.49 a litre and diesel Rs 69.04 in Delhi.

More importantly, GST being an ad valorem levy — charged as a percentage on exfactory price — would have a cascading impact on retail prices whenever refinery gate prices are increased because of a rise benchmark international oil prices. The inverse would also be true. KOCHI: The Cochin International Airport Limited (CIAL) has suffered an estimated loss of over Rs 220 crores in the floods, an official said here on Tuesday.

He said the CIAL management has launched rebuilding of the damaged infrastructure including 2.5 km long airport walls that collapsed after Periyar river overflowed.

The runway, taxi bay, duty free shops and other areas of international and domestic terminals were also submerged, causing damage to electrical equipment including runway lights, the official noted.

He said the solar power system of the world's first solar-powered airport has also suffered damage in the floods.

"We have launched efforts on a war-footing to rebuild the damaged infrastructure. Our initial assessment is that we have suffered an estimated loss of Rs 220 crores in the floods," the official said, adding around 200 workers have been engaged to clean up the terminal building.

The airport is expected to be reopened next week.

Meanwhile, the Naval Air Station, INS Garuda, has commenced civil aircraft operations from Monday.

Alliance Air (a subsidiary of Air India) was able to operate two flights to Bangalore and one flight to Coimbatore.

An Indigo flight also did a trial landing and will be undertaking flying operations from on Tuesday. NEW DELHI: Jewellery retailer Senco Gold has filed draft papers with markets regulator Sebi to raise an estimated Rs 600 crore through an initial public offering.

The company is primarily engaged in selling gold and diamond jewellery and also sell jewellery made of silver, platinum and precious and semiprecious stones and metals.

The IPO comprises equity shares of Senco Gold aggregating up to Rs 600 crore, according to the draft red herring prospectus (DRHP) filed with Sebi.

Funds raised through the issue will be used for financing the establishment of new company operated showrooms, to fund working capital requirements and for other general corporate purposes.