 "Petroleum products may come under GST in future: Pradhan")
Union Minister for Petroleum and Natural Gas Dharmendra Pradhan is hopeful that petroleum products will be brought under the purview of the Goods and Services Tax (GST) in the coming days.
At present, crude oil, petrol, diesel, jet fuel and natural gas have been excluded from the GST net. Along with these five products, alcohol is kept out of the new indirect tax structure.
“We have proposed to the GST Council that for the economic development of the country, petroleum products should be brought under GST purview. However, the state's representatives in the GST Council do not agree for their inclusion. GST Council is the forum for cooperative federalism,” said Pradhan after attending the GST Outreach programme for the oil industry organised in Bhubaneswar.
It is not possible to bring the petroleum products without the nod of the GST Council. “We are hopeful that the GST Council will take a prudent decision on bringing these products (diesel, petrol, natural gas and ATF) under the GST in the coming days as this year is over (for finalisation of rates),” he added.
Even after the roll out of GST scheduled from July 1, the GST Council has decided that the existing VAT model of tax collection will continue on these petroleum products.
The non-inclusion of petroleum products in the GST list may give a harrowing time to the petrol pump retailers as they have to follow a dual tax regime, trade sources said.
The Ministry of Petroleum and Natural Gas has planned to organise 100 outreach programmes across the country.
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