Fuels under GST
Do you all think Fuels should be under GST? How much price reduction is expected by citizens? more
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I believe it is necessary to bring fuels under GST since most states tax at least 27% VAT on petrol (apart from other excise duty, entry taxes, etc.). Given that the highest tax slab in GST is 28%, one can hope that petrol prices should come down, but that will depend on how many taxes are eliminated by the GST. If GST reduces the net taxation on fuel, everyone will gain. Those living in the areas that are near the border of two states can easily purchase oil from any petrol pump and not have to think about a State's VAT charges. I am sure cost for transporters will also decrease, which will hopefully reduce the price of consumables as well. more
Oct 10
It will be good to include fuels under GST because the pricing will be uniform across the country. I don't think that the government will lose revenue because they will simply increase the base price of the fuels and earn revenue thru' the state owned oil companies, if they wish to. Currently, there is wide disparity in fuel prices across the country only because of the taxes levied by respective state governments. Fuel is cheaper an Union territories and states like Delhi. It's also cheaper to tank up in states like Gujarat due to forthcoming elections. The difference in prices can be as high as 15%. This is unfair as all citizens across the country should be treated equally and the government should not please one section of the citizens at the cost of other tax payers. more
Oct 10
Jayesh It is good for consumers to bring petroleum products under GST as even with 100% GST the prices may be in the range of Rs.50 for diesel. There are many political issues and practical issues involved. The petrol bunks are available across the country.They may be getting fuel from Refineries within the state and Inter State. The refineries supplies to Petrol Bunks. The GST can be IGST or CGST& SGST. There may be interstate connectivity through pipes for carrying fuel.How to treat this? Most of the State charge TAX to consumers.The Refineries may be charging more than 100% towards excise ,cess and other duties.So the state should forego a portion of the Tax and come to a settlement on sharing pattern. Then only GST is feasible. Hope the MODI Government has initiated discussions on this line.It needs political support from public to Central Government for forcing the States to agree more
Oct 10
If the fuel prices are reduced the consumptioof fuel will increase which will result in higher import bills which is detrimental to economy and also there will be increase in pollution level more
Oct 10
Do we all really think that government will bring fuel under GST, when presently the tax component is nearly 150% and reducing Rupee 1/- entails a loss of 13,000 crores under what slab will they put it will it be 28% plus surcharge to make it price neutral cause all state government's will loose thier income & from where will Central government make it good. more
Oct 10
They are never going to bring fuel under GST, nor would it be practical more
Oct 10
