States are likely to gain an additional Rs 37,426 crore in revenue in the current fiscal on the back of surge in oil prices and better tax collection due to the GST, says a report. According to SBI Research, the impact of GST on tax revenue is minimal except in a few states.
The proposal of bringing petroleum products into the ambit of Goods and Services Tax (GST) is being opposed by the state governments.
In the wake of the recent petrol and diesel price hike across India, former Finance Minister P. Chidambaram on Monday claimed that fuel prices would immediately come down if brought under the ambit of the Goods and Services Tax (GST).
The inclusion of petroleum products under the Goods and Services Tax (GST) will not prevent price fluctuations as India is a massive importer of crude and domestic prices will reflect global price movements, said Sanjeev Sanyal (in pic), principal economic advisor in the finance ministry.
Reducing taxes is the best solution to check the spurt in fuel prices which would also tremendously help India on the exports front, industry body Assocham said today.
The issue of including natural gas in the goods and services tax could be taken up in the next meeting of the GST Council, a senior government official said on Friday.
Despite a straight sixth day cut in petrol and diesel prices, rates are still quite high across the country. In the backdrop of this, the government is mulling long-term solutions to address the issue of spiralling fuel prices.
With no respite over surging fuel prices, junior Union finance ministerShiv Pratap Shukla on Wednesday said that his government was ready to bring petroleum products under the ambit of single tax regime — GST — to pass on the relief to users.
With the prices of automobile fuels surging, Minister for Petroleum and Natural Gas Dharmendra Pradhan said in Bhubaneswar Monday that bringing petroleum products under the ambit of the Goods and Service Tax (GST) was being considered by the government as part of a “holistic strategy” to address the issue.
The online petition, now gaining ground, has also pointed out that Maharashtra chief minister Devendra Fadnavis has come out in support of bringing diesel and petrol under the GST purview.