Petrol and diesel will not be brought under GST regime as of now

Lucknow: Petrol and diesel will not be brought under the goods and services tax (GST) regime as of now. Decision to this effect was taken during the 45th meeting of the GST Council held under the chairmanship of Union Finance Minister Nirmala Sitharaman in Lucknow today.

According to reports, representatives of several State governments vehemently protested the proposal to bring petrol and diesel under the GST regime. Even they were not ready to discuss the topic during the GST Council meeting which was conducted physical first time after December 18, 2019. In the past 20 months, all the meetings have been conducted virtually due to the ongoing COVID pandemic situation.

It was expected that the petroleum products including petrol and diesel would be brought under GST with an aim to check the high-rising fuel prices and provide relief to the common people.

According to reports, the States did not agree to bring the petrol and diesel under the GST regime since the value-added tax (VAT) levied on the fuel is a major source of their revenue and amid the ongoing COVID situation it needs money to fight the virus.

It is to be noted here that the Kerala High Court in June this year had directed GST Council to forward a representation to Centre to bring petrol and diesel under the GST regime and take an appropriate decision within six weeks.

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