“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.