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Petroleum products will not be brought under GST: MP Fin Min

Press Trust of India  |  Indore 

The here today made it clear that petroleum products will not be brought under the ambit of Goods and Services (GST).

"The total commercial that we get from petroleum products is about 35 per cent of the total (commercial) that collects.

"Therefore, it is difficult for us to bring it under the as we need funds for running the government, development and to fulfill our social obligations," state minister, Jayant Mallaiya told reporters.

However, the minister, who admitted that the rate of (VAT and entry tax) on petroleum products in the state is on the higher side also gave a justification for it.

"States like and get sufficient from industrial production, but it was not the case with as industrial activities are less here. Therefore, for earning enough funds (revenue) we have to levy on petroleum products," Mallaiya said.

The minister said in 2016-17, a total of Rs 29,500 crore commercial was collected in the state which means an increase of 14.5 per cent per year.

Mallaiya said he was satisfied with the implementation of in the state and the Council on the basis of state's feedback is continuously reforming it.

"will get lot of benefit with this new regime because it is located centrally. It will also result in enhancement of business activities especially stocking and transportation of goods," he said.

Answering a question he said only those who don't want to do their business in a fair manner are not happy with decisions like and demonetisation.

On opposition's charge that the state is burdening people by borrowing money continuously, the minister said the will not have any problem in taking loans for developmental and schemes meant for fulfilling social obligations.

Besides, the growth rate of the state is much higher under BJP regime than that of Congress.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, August 12 2017. 18:28 IST