Fri. Mar 29th, 2024

Finance Minister Arun Jaitley on Tuesday shared the stand the states have been holding of late. He said that states are not in favour of the inclusion of petrol and diesel into GST. Petrol and diesel will see periodic adjustments with tax rate modifications by the Centre and the state governments. He added that no new indirect taxes would be levied.

GST was brought on July 1 but excluded from its purview real estate, jet fuel and petroleum products. As a matter of fact, products outside the purview of GST attract duties like central excise and VAT. Petroleum items fill the centre and status with tax revenues they have been kept out of GST. But on the other hand, this exclusion has created compliance issues including taking input tax credit.

Jaitley added,

“So far the mood of states (most of the states) is not in favour of including it (in GST) at the moment. But I am sure as the GST experience moves on, I think, natural gas, real estate — these are areas which are to be brought in and then probably at some stage we will keep trying for petrol, diesel and potable alcohol.”

The Finance Minister reported an increase in “the taxpayers’ base in indirect tax. He is of the opinion that the maturity of the software system and anti-evasion measures will further improve and increase compliance level in GST. Jaitley was at a post-Budget meeting organized by industry chamber FICCI. He also laid the fiscal deficit target of 3.3 percent of GDP in 2018-19, down from 3.5 percent this fiscal.

By saket