No. of views : (2899)
Additional Tax for petrol and diesel under GST?
Posted on: 21/Jun/2018 5:04:05 PM
Information is gathered that as the central government decides to include petrol and diesel under GST, there may be an increase in the state sales tax or Value Added Tax.
A central government official explained in this regard that no country in the world includes only GST for petrol and diesel. VAT is also being included. Because of the current increase in crude oil prices, there is a demand to bring petrol and diesel under GST. So, the central government is scrutinizing on this proposal.
However, when a new product is brought under GST, the old prevailing rates of taxes must be included. However, the present tax on petrol and diesel is much more than 28%, which is the maximum GST slab at present. Thus, if petrol and diesel are brought under GST, it will create a huge loss of revenue for the central and the state government.
There are no funds available with the central government to offset these state government losses. So, the central government may need to approve the introduction of additional sales tax or VAT.
At the same time, a strict condition may be imposed that the prices should not increase above the present rates. This, it is quite expected that even if petrol and diesel are brought under GST, there may be no change in the current prices.
Post your requirement - We will connect with the right vendor or service provider
