Petrol and diesel continue to be outside the ambit of GST and the general view is that getting it under the new indirect tax regime can significantly reduce prices. However, MS Mani, Partner, Deloitte India, believes that it may not be as straight forward as that.
“Unlike what people might think petroleum products don’t mean diesel and petrol only. It also includes natural gas and aviation turbine fuel, among other things. Each of these products is not taxed at the same rate, either by the Centre or states,” he says. Petroleum products attract an excise duty which is a central tax, and also state specific tax.
The Centre taxes petrol, diesel differently from the way it taxes aviation and natural gas. Each state levies a different tax rate. For example, Maharashtra has the highest rate of tax on petrol and diesel in India
“When GST was introduced, GST Council felt at point of time, perhaps rightly so, that petroleum products can be taken up in stage two. Read More
Latest posts by The Economic Times (see all)
- Adani Power, Adaro, NLC in race to buy some IL&FS assets - February 23, 2019
- America’s oil boom on fire even as wildcatters save cash - February 21, 2019
- India’s coal power plants ‘unhealthiest’ in world: Study - February 21, 2019