Government to bring petrol and diesel under GST

New Delhi : The long pending demand of one nation one tax may become real for petrol and diesel in the upcoming GST council meeting on Friday.

The Council, which comprises central and state finance ministers, in its meeting scheduled in Lucknow on Friday, is also likely to consider extending the time for duty relief on COVID-19 essentials, according to sources in the know of the development.

Currently, different taxes are applied of petrol and diesel in different states and GST is being seen as a solution to control the price hike in fuel.

In June, the Kerala High Court, based on a writ petition, had asked the GST Council to decide on bringing petrol and diesel within the goods and services tax (GST) ambit.

In June, the Kerala High Court, based on a writ petition, had asked the GST Council to decide on bringing petrol and diesel within the goods and services tax (GST) ambit.

When GST was brought into effect five petroleum goods – petrol, diesel, ATF, natural gas and crude oil – were kept out of its purview for the time being. This was done as both central and state government finances heavily depend on these products.

The Centre will also lose as the majority of the Rs 32.80 per litre excise duty on petrol and Rs 31.80 on diesel is made up of cesses, which it does not share with the states. Under GST, all revenues will be split 50:50 between the Centre and the states.