Retail prices of petrol in three metros Mumbai, Kolkata, and Chennai are ruling above 100 a litre and in Delhi over ₹90 for at least three years now.
Similar is the case with diesel, which is above 90 in Mumbai, Kolkata, and Chennai, and more than 85 in Delhi.
This could be lowered to some extent if these fuels are brought under goods and services tax (GST), an idea the Centre is in favour of.
However, the recently held GST Council meeting took the decision to streamline rates on certain products such as milk cans, carton boxes, sprinklers, solar cookers and services provided by the Indian Railways but it did not touch petrol and diesel in the seven-year-old indirect tax. The list of items for discussion included natural gas and aviation turbine fuel (ATF).
At present, GST is not imposed on crude oil, petrol, diesel, ATF, and natural gas.
This was despite the fact that including petroleum in GST will not require a Constitutional amendment if the Council, comprising the Union and state finance ministers, agrees. This is so because GST on petroleum is already there in the Constitution Amendment Act on GST.
According to the 101st Constitution Amendment Act, it is up to the GST Council to decide the date on which such a move is to be taken.
Bringing petroleum products, particularly petrol and diesel, under GST would do away with the cascading impact of taxes and enable players to claim input tax credit (ITC), giving relief to companies and customers.
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