AP govt against move to include natural gas in GST ambit

The Andhra Pradesh government today opposed the move to bring natural gas within the ambit of the Goods and Services Tax as such a plan would make the state lose substantial revenue.

Referring to reports in this regard, State finance minister Yanamala Ramakrishnudu said the proposal was not even circulated to the states.

In a statement, Ramakrishnudu also opposed any move to include any petroleum product under GST.

Issuing of statements by the officials of the council on such sensitive policy issues cannot be accepted, he said.

Andhra Pradesh secured a revenue of Rs 523 crore on sale of natural gas in 2017-18.

"Being a producer of the natural gas, the state would lose substantial revenue if the gas is included in GST ambit as our ultimate consumption is lesser than the production," Ramakrishnudu said.

"The state has already lost autonomy in raising fiscal resources with the introduction of GST. Now, inclusion of natural gas in GST will further affect the revenue position. For this reason, we oppose inclusion of other petroleum products also under GST," he added.

He claimed that the group of ministers, constituted by the GST council to deliberate on various issues and make recommendations, was issuing statements to the media before they were put up in the council.

"Such press briefings are creating confusion in the minds of traders and other tax payers as they are getting the impression that they are the decisions of the council, he said, adding, all these issues were addressed to the chairman of the GST council for appropriate action.