Central Government Aims to Bring Petrol and Diesel Under GST

Finance Minister Nirmala Sitharaman announced that the Central Government is eager to include petrol and diesel under the ambit of the Goods and Services Tax (GST). However, she clarified that the decision ultimately lies with the states.

Speaking on the matter, Sitharaman stated, "The intent of the Central Government is clear; we want petrol and diesel to be included in GST. However, it is up to the states to decide, come together, and agree on this inclusion."

The inclusion of petrol and diesel under GST has been a topic of debate for years. Currently, these fuels are taxed separately by the states and the Centre, leading to varying rates across the country. Bringing them under GST would standardize taxation and potentially reduce the burden on consumers.

However, such a move requires consensus from all states, as GST decisions are made collectively by the GST Council, comprising both Central and state representatives. Sitharaman emphasized the importance of cooperative federalism, stating that a unanimous agreement is necessary for this significant change.

The proposal has sparked mixed reactions, with some states voicing concerns about potential revenue losses. On the other hand, industry experts and consumer advocates have welcomed the idea, highlighting its potential to streamline fuel pricing and promote economic efficiency.

The government’s push to include petrol and diesel under GST signals a step towards comprehensive tax reforms, but its success depends on achieving consensus among all stakeholders.