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Government sources told CNBC-TV18 that the call to levy GST on petroleum products is on hold considering the current COVID situation and that if implemented, the move could have serious revenue implications
The 45th GST Council has decided not to include petrol and diesel and ATF under GST until India overcomes the COVID-19 pandemic. Government officials told CNBC-TV18 that the call to levy GST on petroleum products is on hold considering the current COVID situation.
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Moreover, the move, if implemented could have serious revenue implications and may need further discussion before arriving at a decision.
Petroleum products like petrol, diesel and ATF are by law included in the GST Act, but it's the Council's right to decide on the inclusion of these products under GST.
Finance Minister Nirmala Sitharaman had said after the 45th GST Council meeting in September that this is not the right time to bring fuel products under GST, but had not given a reason for non-inclusion then. The FM had also clarified that the matter had come up for deliberation during the meet.
She had earlier said, "I would like to make absolutely clear that this item came on the agenda for today's discussion on petroleum products." She cited a Kerala High Court order, wherein someone had moved court to included fuel products under GST. "The court has suggested the matter be placed before the GST Council. So on the direction of the court today it was brought onto the table for discussion," she said in September.
The Council members had clearly said that they wouldn't want fuel products to be included under GST. The discussion took place as the court had asked the GST Council to report back on the decision taken in around two months.
Hence, the GST Council has decided to report to the Kerala High Court that it wasn't time for petroleum products to be brought under GST.
First Published: Dec 1, 2021 4:52 PM IST