New Delhi: The Goods and Services Tax (GST) Council is all set to meet in Lucknow on Friday, September 15. Besides all other important issues, the council is likely to discuss bringing fuel prices under the ambit of GST taxation. If that happens, then the prices of petrol and diesel could plummet, in what could be a major respite for the common man who has been faced with high fuel prices in the past few years.
According to economists at the State Bank of India (SBI), petrol price could touch Rs 75 per litre if the brought under the ambit of the GST. At the same time, diesel could be priced as low as Rs 68 per litre if GST becomes applicable on the fuel.
The total loss of bringing petrol and diesel prices under GST will stand at about Rs 1 lakh crore or 0.4 % of GDP, according to the calculation by the economists made under the assumption of global crude prices at $ 60 a barrel and exchange rate at ₹ 73 per dollar.
“Centre and states are loathe to bring crude oil products under the GST regime as sales tax/VAT (value added tax) on petroleum products is a major source of own tax revenue for them. Thus, there is lack of political will to bring crude under the ambit of GST,” economists said.
However, economists aren’t confident of any such move by the GST Council. According to them, there is a “lack of political will, which is keeping Indian oil product prices at one of the highest in the world.”
In the national capital, Delhi, petrol and diesel are currently retailing at Rs 101.19 and Rs 88.62 per litre, respectively. The Central government currently charges taxes equal to 32% of the prices of petrol while the state taxes vary from state to state. Also Read: Twitter reopens account verification process after one month hiatus
In comparison, the estimated GST-led prices of petrol and diesel are much lower. GST Council will now discuss the matter on September 17, in accordance with the directions of the Kerala high court’s June order. Also Read: 2021 Force Gurkha SUV unveiled: Check launch, delivery date, price and features of Thar rival