Former chief economic adviser Arvind Subramanian said Monday that the inclusion of petrol and diesel in the Goods and Services Tax (GST) ambit was not possible until the revenues under the new tax regime stabilises.
“You know it is desirable to have that (inclusion of petrol and diesel in GST). There is a good economic explanation or fiscal explanation for why it is not easy. Because if you put petroleum products in to GST, naturally you will have a loss of revenues,” Subramanian said at an interactive session at ‘Mathan’, a platform for thought leaders, here.
“Because it is (a) widely-used intermediate input. And, therefore, the thinking was that the GST revenues have to stabilise before that can be brought in Read More