Congress backs Pradhan over GST on petroleum products in MP

Opposition Congress today backed Union Oil Minister Dharmendra Pradhan's suggestion that the BJP government in Madhya Pradesh should levy Goods and Services Tax (GST) on petroleum products in the state.
Speaking at the just-concluded Global Investors Summit here, Pradhan had asked states to agree on bringing all petroleum products under the GST regime and made specific appeal to Chief Minister Shivraj Singh Chouhan in this regard.
"In public interest, we demand the MP Government give permission to GST Council to levy GST on petroleum products in the State as wished by Pradhan. But no other taxes should be levied on petroleum products in the State," MP Congress spokesman Narendra Saluja told reporters here.

"The State Government had been collecting huge revenue from taxes like VAT on petroleum products. As a result of this, these products have become too costly, especially for the common man in Madhya Pradesh in comparison to other States," he added.
Pradhan, during the meet, told Chouhan consumption of petroleum products had shot up in the last 3-4 years.
"I urge the Chief Minister to accord permission to bring petroleum products under the GST ambit. This won't hit revenue collection (of the Government)," he had said.

The Oil Minister had said petroleum is currently under 'state list' for the purpose of taxation under GST.

"GST Council will decide on this (taxation of petroleum products). On behalf of the industry, I would request the States to allow petroleum products to be brought under GST taxation," he had said.
As per the GST Constitutional Amendment Bill, petroleum products such as LPG, kerosene and naptha would attract GST.
However, other items -- crude oil, natural gas, petrol, diesel, high speed diesel and aviation turbine fuel -- have been excluded from GST for initial years. Hence, these products will continue to be taxed in the hands of the states as they are being taxed at present.