Tuesday, 25 January 2022

Diesel and petrol can't be brought under GST in pandemic: Govt

Diesel and petrol can't be brought under GST in a pandemic: Govt

A government official on 1st December said that petrol and diesel couldn't be brought under the GST regime amidst the ongoing COVID-19 pandemic.

The GST Council decided due to "revenue implication," the official added.

The official said.

"The 45th GST Council rejects charges GST on petrol and diesel due to revenue implication. The council puts in suspension GST on fuel until COVID-19 crisis is ended,"

Centre's excise on fuel

The Central government's clear up from excise duty charges on diesel and petrol more than double to Rs 3.72 lakh crores in 2020-21, out of which states were given less than Rs 20,000 crores, as per reply by the government on Tuesday in the Rajya Sabha.

Pankaj Chaudhary, Minister of State Finance, in a written reply to a question, stated that collection from charges of central excise duty on diesel and petrol increased from Rs 3.72 lakh crore in 2019-20 to Rs 1.78 lakh crore in 2020-21 (April 2020 to March 2021).

The increase in the collection was mainly because of the rise in the incidence of tax on fuels. Total excise duty on diesel was Rs 15.83 per liter in 2019 and Rs 19.98 a liter on petrol. The government increased excise duty twice last year to Rs 32.98 per liter on petrol and Rs 31.83 on diesel.

Diesel and petrol can t be brought under GST in pandemic Govt 1unsplash image

Read More: VAT reduced on Diesel and Petrol in Rajasthan from Today

Delhi cut VAT

Meanwhile, Delhi slashed its value-added tax (VAT) on petrol to 19.40 percent from 30 percent on 1st December. The fuel will now be Rs 8 per liter cheaper.

The new rate will come into effect from 2nd December, ANI tweeted. Once the VAT cut takes effect, the price of petrol will reduce from Rs 103 per liter to Rs 95 per liter in Delhi.

The order came after a cabinet meeting chaired by CM Arvind Kejriwal, PTI reported.

India fuel rates

Overall, fuel rates remain unchanged for 27 days in a row in the country. The Centre cut excise duty on petrol by Rs 5 per liter and diesel by Rs 10 a liter on 3rd November to relieve consumers battered by record-high retail fuel prices. The 4th November decline took the price of petrol in Delhi to Rs 103.97 a liter.

This excise duty cut was the highest-ever reduction. The Union government also urged states to reduce VAT on petrol and diesel to relieve consumers commensurately.

Following this, 28 states and union territories have cut VAT to give further reprieve to consumers battered by record-high retail prices.

In Mumbai, petrol is at Rs 109.98/liter, and diesel is Rs 94.14/liter. On 29th May, Mumbai became the first metro where petrol was retailed above Rs 100/liter. Diesel and Petrol prices in Kolkata are at Rs 104.67/liter, and Rs 89.79/liter, respectively, and Chennai retailed a liter of petrol at Rs 101.40/liter and diesel at Rs 91.43/liter.

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