The Central Government will soon bring petrol and diesel under the Goods and Services Tax (GST) with the consent of all the State governments, former MP and BJP’s senior leader C.P. Radhakrishnan said here on Tuesday*.
“The true intention of the Central government is to bring the prices of petrol and diesel under GST,” he told press persons in response to a question on the rising fuel prices. However, he alleged that the State governments had not agreed to the proposal yet*.
It may be noted here that no announcement of any discussion of inclusion of petroleum products in the 40th GST Council meeting was made by the Union Finance Minister during virtual press briefing held post meeting.
It is worth noting that as per Section 9(1) read with Section 9(2) of the CGST Act, 2017 / Section 5(1) read with Section 5(2) of the IGST Act, five petroleum products namely petroleum crude, high speed diesel, motor spirit (commonly known as petrol) , natural gas and aviation turbine fuel have temporarily been kept outside ambit of GST and GST thereon shall be levied with effect from such date as may be notified by the Government on the recommendations of the Council.
The above petroleum products are still subject to Central Excise Duty and State VAT and Central Sales Tax.Further input tax credit of GST paid on inward supplies also cannot be availed by supplier of these products and same forms part of their cost.
*Source: The Hindu Coimbatore , dated 16.06.2020.
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