10 C
New Delhi
Sunday 15 December 2019
Economy FM rules out immediate inclusion of petrol, diesel into...

FM rules out immediate inclusion of petrol, diesel into GST

New Delhi: Finance Minister Arun Jaitley today said the states are not in favour of including petrol and diesel into GST at the moment, ruling out any immediate levy of the new indirect tax on these petroleum products.

While GST was rolled out on 1 July, real estate as well as crude oil, jet fuel or ATF, natural gas, diesel, and petrol were kept out of its purview. This meant that the products continued to attract duties like central excise and VAT.

“So far the mood of states (most of the states) is not in favour of including it (in GST) at the moment. But I am sure as the GST experience moves on, I think, natural gas, real estate — these are areas which are to be brought in and then probably at some stage we will keep trying for petrol, diesel, and potable alcohol,” Jaitley said.

The five petroleum items have been kept out of GST as they are considered cash cows, giving both the Centre and states bulk of their tax revenues.

But keeping them out has created compliance issues including taking input tax credit.

For example, a refinery producing diesel and petrol would pay GST on the procurement of plant, machinery, and services but that tax would not be creditable against excise duty and VAT levied on petrol and diesel.

Jaitley said further rationalisation of the tax rates would continue as revenues go up and ultimately the 28% tax slab would be restricted to demerit and luxury goods.

“GST broadly has settled down. Almost in every meeting now, we are able to rationalise the tariffs and this process will continue. It will continue with the structure tariffs being rationalised and the structure itself being rationalised as the collections go up,” he said.

The minister said that GST currently is a voluntarily declared GST with one check and safeguard that is the Input Tax Credit.

“The taxpayers’ base in indirect tax has widened. I think slowly as the software system matures and the 2-3 anti-evasion measures that are possible are put in place, the compliance level in GST will automatically improve,” he said.

Jaitley said from voluntary declaration under the GST which are currently taking place, because of anti-evasion measure in place, the collection will improve.

An improved collection will help to stick to fiscal deficit target in coming years, he said.

The government has set a fiscal deficit target of 3.3% of GDP in 2018-19, down from 3.5% this fiscal.

PTI

Subscribe to our newsletter

You will get all our latest news and articles via email when you subscribe

The email despatches will be non-commercial in nature
Disputes, if any, subject to jurisdiction in New Delhi

Leave a Reply

Opinion

Justice That Is Instant Is Travesty

But neither the state nor society can wash their hands off this social craving for settling scores in the name of doing justice to the victim

Karnataka Voters Punished INC, JDS Leaders

Even the BJP was not confident of the result even as their leaders kept saying for public consumption they were winning all the 15 seats

The United States Of The World

The United States, stereotyped as the land of plenty and plentiful guns, is still a destination of choice for people from across the world

प्याज़ के आँसू न रोएँ — महंगाई से किसान, उपभोक्ता दोनों को फ़ायदा

जिस अल्प मुद्रास्फीति की वजह से वे सरकार से बहुत खुश थे, उसी 1.38 प्रतिशत की खाद्यान्न मुद्रास्फीति के कारण किसानों को अपने पैदावार के लिए समुचित मूल्य नहीं मिल रहे थे

CAB Can Correct Wrongs Of NRC

… if the government can fix the inept bureaucracy and explain what happens to those marked as aliens, as the neighbours are not taking them back
- Advertisement -

Elsewhere

Gurdwara discards 30 kg of cooked dal, realising it was ‘plastic’

The historic Gurudwara Bangla Sahib realised again the next day that the lentils were fake but got alerted before the dal was cooked

Prashant Kishor to campaign for AAP in Delhi election

Prashant Kishor has been successful as an election strategist in most campaigns: BJP at Centre 2014, JDU in Bihar 2015, INC in Punjab 2017

Service sector picks pace; trade deficit reduces

Service exports stood at $ 17.70 billion in October, registering a growth of 5.25%; trade deficit declined from $ 17.58 billion in 2018 to $ 12.12 billion

Sabarimala verdict review: SC snubs Fathima, Bindu

Ignoring the court decision to refer the Sabarimala review pleas to a 7-judge bench, the petitioners tried to get an order to enter the shrine immediately

Andhra Cabinet okays Disha Bill that dictates judiciary

While ordering the prosecution to complete its work in 14 days is permissible, Andhra Pradesh cannot set a time limit for the judiciary

You might also likeRELATED
Recommended to you

For fearless journalism

%d bloggers like this: