Petrol and diesel come under GST: GST Council meeting to be held in Lucknow today
All eyes are set on the 45th Goods and Services Tax (GST) Council meeting to be held in Lucknow today. This is the first time in 20 months that the GST council will be doing any physical meeting.
After December 18, 2019, all the GST Council meeting was done virtually. Finance Minister Nirmala Sitharaman will chair the 45th GST Council meeting at 11 AM in Lucknow today, the Ministry of Finance said in a tweet.
The key agenda of the meeting is how to bring diesel, petrol and other petroleum products in the ambit of GST. In the previous meeting held on June 12 tax rates on various Covid-19 drugs and essentials were reduced till September 30.
Petrol, diesel come under GST? What tax experts are saying
Tax experts said that seeing the current situation with respect to the Covid-19 situation, bringing petro products under GST will be a very tough call for both the Centre and states. “There are certain items that are not covered under GST such as Petroleum products, alcoholic liquor and electricity.
The reason is that these items contribute a remarkable amount of revenue to the states and Central. The GST Council might on Friday consider taxing petrol, diesel and other petroleum products under the single national GST regime, a move that may require huge compromises by both central and state governments on taxing these products.
If petroleum is brought under the GST regime, both (central and state) the taxes would be merged and prices would be uniform across the country and there is a high possibility that we see a significant fall in the prices due to the elimination of cascading effect of tax on tax,” said Abhishek Soni, Co-Founder & CEO, Tax2win.
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