The government collected Rs 22,652 crore by levying VAT/sales tax and surcharge. Maharashtra alone contributes to 14 per cent towards the state-wise collection of sales tax/ VAT on petrol and diesel.
Auto fuel has consistently borne the burden of indirect taxes, especially VAT/sales tax and excise. In case of Maharashtra, in 2017-18, the government collected Rs 22,652 crore by levying VAT/sales tax and surcharge. Maharashtra alone contributes to 14 per cent towards the state-wise collection of sales tax/ VAT on petrol and diesel.
It is this huge share of the state revenue that the state government does not want to let go off. This is coming clearly at the cost of the final consumer having to bear the brunt of higher fuel prices.
Petrol and diesel prices are determined after taking into consideration the price levied to dealers, excise duty by Centre, dealer commission, and VAT/sales tax by state. June 2017 onwards, petrol and diesel price was revised on a daily basis. This was done with the idea that daily revision will reduce the volatility in retail prices, and protect the consumer against sharp fluctuations.
Credit rating agency CARE said the inclusion of petrol and diesel under the GST ambit has been long deliberated. Over the past few years, when crude oil prices had dropped globally, the government had increased the excise duty on petroleum products, which had increased the revenue receipts of the government coffers. With sharp recovery of crude oil prices globally and increase in prices of auto fuels, inclusion of petrol and diesel under GST will help rationalise the prices of these auto fuels.
GOVT MOVE
In the past few years, when crude oil prices had dropped globally, the govt increased excise duty on petroleum products, which had increased the revenue receipts of the government coffers.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Petrol Pump")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}