A major decision to bring down the skyrocketing fuel prices may be taken in 45th GST Council Meeting. The 45th GST Council Meeting, headed by Union Finance Minister Nirmala Sitharaman will be held in Lucknow at Hotel Taj on Friday, September 17, at 11 am. The council migjt consider taxing petrol, diesel and other petroleum products might come under the single national GST regime, a move that may require huge compromises by both central and state governments. In Delhi, at present, petrol is priced at ₹101.19 per litre and diesel at ₹88.62. If the proposal is accepted then consumers may see a downfall in price for fuels. According to a report by Hindustan Times’ sister publication Livehindustan, this may bring petrol price to ₹75 per litre, and diesel to ₹68 per litre. According to official data, the petroleum sector contributed ₹3,71,726 crore central excise revenue in 2020-21, and ₹2,02,937 crore state levies or value-added tax (VAT).
Earlier in June, based on a writ petition, the Kerala High Court, had asked the GST Council to decide on bringing petrol and diesel within the GST.
The GST Council, chaired by Finance Minister Nirmala Sitharaman, would bring petrol and diesel within GST. According to sources in the know of the development, meeting scheduled in Lucknow on Friday, is also likely to consider extending the time for duty relief on COVID-19 essentials.
GST is being thought to be a solution for the problem of near-record high petrol and diesel rates in the country, as it would end the cascading effect of tax on tax (state VAT being levied not just on the cost of production but also on the excise duty charged by the Centre on such output).
In the meeting various important issues are going to discuss, which have an impact on the life of a common man. Some announcements related to the pharma sector are also possible. This is the first time after pandemic that physical meeting is going to take place. Last time physical meeting was held on December 18, 2019, before the pandemic. Now this is the first time after COVID time that the physical meeting is going to take place.