GST Council May Consider Bringing Petrol Diesel Under GST

According to rumours, the GST Council may propose taxing gasoline, diesel, and other petroleum products on Friday. For this to happen, both the federal and state governments may have to make significant compromises. The council is likely to expand needs in the future, and it is also anticipated to consider extending duty-free periods. Earlier this year, the Kerala High Court directed the Council to investigate the possibility of including gasoline and diesel under the ambit of the GST. It was not included by the national GST since state taxes such as excise duty and VAT were not included. Because the GST is a consumption-based tax, gasoline and petroleum goods will be subject to it.

According to tax experts, petroleum goods would be tough to bring into the GST net for both the Centre and the states. If the GST Council votes to keep the compensation cess, it might be prolonged beyond 2022. There hasn't been an actual meeting of the GST Council in 20 months. Petrol and diesel prices have reached an all-time high as global oil prices have risen due to a resurgence in demand. If oil goods are included in the GST, businesses would be allowed to deduct the tax they paid on their inputs. As a consequence, gasoline taxes across the country will be uniform.