Petrol prices may soon inflate with GST

GST

GSTGST council may soon charge GST on petrol and other realty articles, according to Sushil Modi, Minister of Finance, Government of Bihar.

“Electricity, real estate, stamp duty and petroleum products should become part of GST (Goods and Services Tax). This would be our (GST Council) endeavour,” said Sushil Modi at annual meet of Federation of Indian Chambers of Commerce & Industry (FICCI).

However, he did not mention any specific timeline for this to happen.

“Inclusion of these can happen without amending the Constitution,” he said.

He further explained that if the petroleum products are brought under GST’s regime it will attract the highest tax slab prevalent at that time of implementation and states would have the liberty to charge cess on it in order to protect their revenues.

This move will help the states and the Centre in earning 40 per cent of their revenue from petroleum products at present.

Both states and the Centre earn 40 per cent of their revenue from petroleum products at present.

The current GST regime comprises of five tax slabs namely 0 per cent, 5 per cent, 12 per cent, 18 per cent and 28 per cent. An additional GST cess is also charged on certain products.

"Exciting news! Elets Banking & Finance Post is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!

Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔ www.eletsonline.com/subscription/

Get a chance to meet the Who's who of the Banking & Finance industry. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.