Good and Services Tax (GST) will complete one year on July 1, 2018 and reports suggests that government is planning a mega event to mark the first anniversary of Good and Services Tax (GST). However, the debate is still on to find out how beneficial the tax regime has been. GST was rolled in for equal tax in entire country, and it is called as one nation, one tax.
But people are miffed by the government’s decision for not including ‘petrol and diesel’ under GST. As the taxes on petrol and diesel are more than 45 per cent currently, and in GST highest slab of tax is 28 per cent and if petrol and diesel are brought under GST’ highest tax slab which is 28 per cent than this will have a huge impact on pricing and the rates will fall.
Currently in Mumbai petrol and diesel prices are Rs 82 and Rs 71 but, if they come under GST than their will be humongous difference in pricing, “If GST is imposed on petrol and diesel, it will lead to a fall in the prices of petrol and diesel. Even if these items are taxed at a higher rate of 28 per cent and cess of 15 per cent, it will lead to reduction in prices,” said Vishal Raheja to NDTV, DGM-GST, Taxmann.
Petrol and diesel helps in transportation of goods, and if the fuel prices are higher then the transportation charges goes up which leads to increase in pricing of day to day products and this effects the budget of common people.
“If petrol/diesel is brought within the ambit of GST, the industry will be able to claim the said credit and reduce their manufacturing cost. Currently, petrol and diesel are major revenue generators for state and central governments. The common man will immensely benefit from the reduced price of petrol/diesel,” said Parag Mehta to NDTV, partner, N.A. Shah Associates LLP.
But some experts have different opinion on bringing petrol and diesel under GST, Niti Aayog vice chairman Rajiv Kumar said to NDTV that bringing petroleum products under GST is impractical. “It (oil) can’t be brought under GST. That’s because the total state and central taxes on petrol put together are around 90 per cent right now,” he had said, according to a report by news agency Indo-Asian News Service.