New Delhi, 24/2 (AO Bureau)Petrol-Diesel prices are skyrocketing. If the central government brings petroleum products under the Goods and Services Tax (GST, GST), then the common man can get relief. Finance Minister Nirmala Sitharaman and Finance Minister Dharmendra Pradhan (Petroleum Minister Dharmendra Pradhan) have also indicated this. If petrol and diesel are kept at a high rate of GST, then the current prices can be reduced to half.
Currently, the central government levies excise and state VAT on petrol and diesel. The rates of these two are so high that petrol of 35 rupees is reaching 90 to 100 rupees per liter in different states. On 23 February, the price of petrol in Delhi was Rs 90.93 per liter and diesel at Rs 81.32 per liter. The Center has imposed excise duty of Rs 32.98 per liter and Rs 31.83 per liter respectively. This is when GST is applicable in the country. GST was introduced on 1 July 2017. Petrol and diesel were then excluded due to the high dependence of the states. Now Sitharaman called for a joint collaboration between the central and state governments to bring down fuel prices.
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This will have the effect of including fuel in GST
If petroleum products are included under GST, fuel will have a uniform price across the country. Not only this, if the GST Council opts for a lower slab, then prices may come down. Currently, there are four primary GST rates in India – 5 percent, 12 percent, 18 percent, and 28 percent. While the Central and State Governments are currently collecting more than 100 percent tax in the name of excise and VAT.
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