Finance Minister Nirmala Sitharaman said in the Lok Sabha on Tuesday that she would be “happy to discuss the suggestion of bringing petrol and diesel within the ambit of Goods and Services Tax” at the next meeting of the GST Council.
BJP member Sushil Kumar Modi said in the Rajya Sabha on Wednesday, that it is not possible to bring petrol and diesel under the GST regime for the next 8-10 years because no state is ready to face revenue loss of more than 2 lakh crore diesel. is. .
Speaking in support of the Finance Bill, the former Finance Minister of Bihar dared the opposition to take up the matter in the GST Council, stating that no Chief Minister or Finance Minister of the non-NDA-ruled states has passed any of the GST Council Has not opposed the verdict.
The Center and the states collectively collected more than ₹ 5 lakh crore tax on petroleum products, Mr. Modi said. The statement said that in view of the increase in petrol prices for the last one year, in some states, ed 100 per liter and Congress and some other parties have demanded that petrol and diesel be brought under the purview of GST. .
Finance Minister Nirmala Sitharaman said in the Lok Sabha on Tuesday that she would be “happy to discuss the suggestion of bringing petrol and diesel within the ambit of Goods and Services Tax” at the next meeting of the GST Council.
Sushil Modi said that it is easy for opposition leaders to make outside statements, but no one raises these issues within the GST Council.
“Again and again, the issue of putting petrol and diesel under the GST regime is being raised. I have been associated with GST for a long time, I want to know from the House whether petrol and diesel are placed under the GST regime. Which Will compensate the states for loss of revenue of more than ₹ 2 lakh crore, ”he asked.
“I want to tell this House that it is not possible to keep petrol and diesel under GST in the next eight to 10 years, because no state is ready to lose revenue of ₹ 2 lakh crore, whether it is Congress or Any other government, ”he said.
He said that the Center and the state together earn more than ₹ 5 lakh crore annually from taxes on petroleum products.
“Opposition people make fun of the GST regime and someone has also said that it is ‘Gabbar Singh Tax’. If you have the courage …. there is presence in all the states … (Congress ruled) Chhattisgarh or Rajasthan, no Chief Minister or Finance Minister has ever opposed the GST structure.
Sushil Modi told the House, “It is easy to make out statements, but you need courage to implement GST by Narendra Modi. If there was another Prime Minister, he would not be able to implement GST.”
He pointed out that if petroleum products are brought under GST, then 28% tax will be levied on them, as it is the highest slab in the tax regime. “Currently, 60% tax is being levied on petroleum products. This will reduce the% from 2 lakh crore to 2.5 lakh crore (both for the Center and the states),” he explained in the House. “If we collect 28% tax on petroleum products, it will be collected be 14 (per liter) as against only be 60 currently,” he said. “If petrol or diesel is priced (100 (per liter) then the tax component is rol 60 which includes ₹ 35 for the Center and Center 25 for the respective states. Also, in addition to the 35 taxes per liter, 42% of the states Goes, “added Mr. Modi. He also dismissed those doubts over the use of revenue generated from diesel and petrol, stating that the funds are used for development activities.
“It is said that the tax collected on petrol and diesel goes into the pocket of the government. There is no separate pocket of the government. Where will the money come from to provide electricity and tap water to all the houses. The cost of tax collection in the country Kalyan is being challenged, ”the BJP leader lamented.
Sushil Modi was the convener of the GST Council for a long time as the Finance Minister of Bihar.
In the first rate cut in over a year, on Wednesday, petrol price was cut by 18 paise per liter and diesel by 17 paise per liter, as international oil prices were the lowest in early February. In Delhi, the price of petrol was reduced from ₹ 90.99 per liter to 91.17 per liter. Diesel now comes for 30 81.30 liters in the national capital, down from the earlier 81.47. Rates have been reduced across the country based on local incidence of taxation (VAT) and vary from state to state. Prices were last reduced on March 16, 2020.
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