Bhubaneswar: Rajya Sabha MP Sasmit Patra on Sunday urged Union Finance Minister Nirmala Sitharaman to place the long-pending issue of bringing petrol and diesel under the Goods and Services Tax (GST) framework before the next GST Council meeting, citing rising fuel costs and inflationary pressures on households and industry.
Patra's Letter to Finance Minister
In his letter, Patra requested that the matter be taken up as a formal agenda item for “comprehensive deliberation and consensus-building” between the Centre and states. He pointed out that the Constitution envisages the eventual inclusion of petroleum products under GST, with Article 279A empowering the GST Council to recommend the date for such a move.
Impact of High Fuel Prices
The MP said high fuel prices are affecting common people and businesses alike, as they push up transportation costs, food prices and overall inflation. He also noted that keeping petrol and diesel outside GST has led to price differences across states due to varying VAT rates.
Background
Petrol and diesel are currently subject to central excise duty and state VAT, which are not subsumed under GST. This has resulted in a complex tax structure and higher prices for consumers. Bringing these fuels under GST would allow for a uniform tax rate across the country and potentially lower prices.
The GST Council, comprising representatives from the Centre and states, has the authority to decide on the inclusion of petroleum products. However, due to revenue concerns, states have been reluctant to bring petrol and diesel under GST.
Patra's appeal comes at a time when fuel prices remain high, adding to the financial burden on citizens and businesses. The next GST Council meeting is expected to discuss this issue, among others.
