If petrol-diesel comes under the purview of Goods and Service Tax (GST), its price will come down by Rs 20-25 per litre.
GST on Petrol and Diesel: The rising price of petrol-diesel has increased inflation further and troubled the common people. If petrol-diesel comes under the purview of Goods and Service Tax (GST), its price will come down by Rs 20-25 per litre. However, no consensus has not been reached between the state governments and the central government on this issue till now.
According to the sources cited by Zee News, the GST Council has once again postponed the matter. The council says that the coronavirus pandemic is not completely over yet. In such a situation, the worry of decreasing revenues in the coming days remains.
According to SBI's report, after coming under GST, petrol will become cheaper by about Rs 20-25 and diesel by about Rs 20. That is, the general public will get a big relief from this. But due to this, the state governments will have to bear heavy losses. Actually, the reason for diesel-petrol not coming under the GST purview is the state governments, because no state wants to inflict loss on its revenue.
Most of the income of the states comes from the tax levied on petrol and diesel, so the states do not want to bring petrol and diesel under the purview of GST. Right now, all the states can fix the price according to their own.
Apart from the state government, this will also cause a loss of about Rs 1 lakh crore to the central government, which is equal to 0.4 percent of the GDP. In 2019, the total excise duty on petrol was Rs 19.98 per litre and that on diesel was Rs 15.83 per litre. But, the central government increased the excise duty twice in a year, due to which the price increased by Rs 32.98 per litre on petrol and Rs 31.83 per litre on diesel.
Meanwhile, taking a big decision, the Kejriwal government of Delhi has reduced the price of petrol. Delhi government has reduced VAT on petrol, after which, a litre of petrol in Delhi will become cheaper by Rs 8. The new rates will be applicable from midnight tonight.
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