The Centre is fully for bringing petroleum products under GST scheduled for implementing from July 1, and the GST Council will require to take a decision on taxing these as per the new indirect tax regime, Finance Minister Arun Jaitley said on Friday.
“As was decided by the Empowered Commitee (EC) of states’ finance ministers, we have brought petroleum in the constitutional amendment for the GST…it is zero rated and tax will only be applied when the GST Council decides,” Jaitley said at the Aaj Tak conclave here on the Goods and Services Tax.
Elaborating on the circumstances of this situation, he said the NDA government at the Centre is all for including petroleum under GST. However, state governments led by the Congress party had consistently opposed including petroleum under GST.
“Every state government of the Congress has opposed putting petroleum in GST. I think, the party should adopt a consistent position on the matter,” he said.
“The petroleum industry will continue to pay input tax on their purchases, but will not avail any benefit for the output. Sooner or later, the GST Council will have to take a decision on petroleum,” he added.
Petroleum, including oil and gas, is a strategic sector that is still not under GST, while the industry has been pushing for its inclusion so as not to be deprived of the benefits of input credit.
Source Link – India
Latest posts by India (see all)
- Indian Railways To Run 52 Weekly Summer Special Trains On Two Routes - February 24, 2018
- CEA Favours Special Pricing For Charging Electric Vehicles - February 24, 2018
- Konkan Railway To Build 12 Km Rail Connector To Kerala Port - February 24, 2018