GST council meet: Government to contemplate on bringing petrol under purview of GST

The common man can soon get relief from the skyrocketing prices of petrol and diesel. For this, the central government may take a decision to bring petrol-diesel under the purview of Goods and Services Tax (Petrol-Diesel under GST). Actually, the Ministerial Committee on GST will consider taxing petroleum products under a national rate. This will open the door for major changes in consumer prices and government revenue. According to sources, this committee, headed by Finance Minister Nirmala Sitharaman, will examine the proposal to bring petrol and diesel under the purview of GST on September 17, 2021.

How many members are required to change the system?

Any change in the GST system would require approval from three-fourths of the committee members. Representatives of all states and territories will be involved in this. However, some of them have opposed the inclusion of fuel in the GST system. They believe that with this an important revenue-generating product of the state will go into the hands of the central government.

What issues can the committee consider in the meeting?

Bringing petrol and diesel under the purview of GST will help the central government in reducing their prices. In recent months, the prices of petrol and diesel had reached a record level due to the tax imposed by the central and state governments. Diesel and gasoline consume more than half of the country’s fuel. Taxes account for more than half of the cost of fuel in the country. It is being told that in Friday’s meeting, the GST panel will consider giving concessions on some medicines used in the treatment of Covid-19 till December 31, 2021.