On December 19th, Finance Minister Arun Jaitley announced in Rajya Sabha that NDA Government is keen to levy GST on Petroleum Products. He feels there is necessity to achieve consensus among the States.
Whereas, ASSOCHAM firmly believes achieving consensus on this subject is impossible. The Industry Body says Centre & States are over-dependent on petroleum sector for revenue generation. 'Collectively, A Tax of anywhere between 100 to 130 percent is being imposed on petrol and diesel. Are Centre and State willing to sacrifice a large part of their revenues? If they are ready, What is the alternative to compensate the revenue deficit?,' it said.
Maximum GST Slab is 28 percent. Even after inclusion of any Cess, Tax on Petrol and Diesel mayn't exceed 50 percent if GST is applied. Would at least one state in the country will let this happen even if the consumer gets benefitted?
Whereas, ASSOCHAM firmly believes achieving consensus on this subject is impossible. The Industry Body says Centre & States are over-dependent on petroleum sector for revenue generation. 'Collectively, A Tax of anywhere between 100 to 130 percent is being imposed on petrol and diesel. Are Centre and State willing to sacrifice a large part of their revenues? If they are ready, What is the alternative to compensate the revenue deficit?,' it said.
Maximum GST Slab is 28 percent. Even after inclusion of any Cess, Tax on Petrol and Diesel mayn't exceed 50 percent if GST is applied. Would at least one state in the country will let this happen even if the consumer gets benefitted?