GST on Petrol and Diesel: The prices of petrol and diesel across the country have made a deep impact on the pockets of the common man. In such a situation, now people can get relief in the midst of rising inflation.
(Petrol-Diesel Price) That is why if Petrol-Diesel comes under GST, then its price will be reduced by 20 to 25 rupees per liter in one stroke. But so far no consensus has been reached between the state and central governments on this issue.
What did the GST Council say?
There is a discussion that the GST Council has once again postponed the matter. The council says that, ‘Corona is not completely over yet. In such a situation, there is a concern about declining earnings in the coming days. At the same time, on Wednesday, the Delhi government gave a big decision for the general public. The government has reduced the prices of petrol. Delhi Government has reduced VAT on petrol. After this, a liter of petrol in Delhi will become cheaper by Rs 8. (Delhi Latest Petrol Price) The new rates will be applicable from midnight tonight.
What will happen if petrol comes under GST?
In fact, in the past, SBI had issued a report saying that after coming under the purview of GST, petrol will become cheaper by about Rs 20-25 and diesel by about Rs 20. This could have given great relief to the public. But, due to this the state governments will have to bear heavy losses. Actually, the reason for diesel-petrol not coming under the GST purview is the state governments, because no state wants to make its loss.
State governments live in profit
The state governments mostly make their profits from the taxes levied on petrol and diesel, so the states do not want to bring petrol and diesel under the purview of GST. Right now all the states can fix the price according to their own.
The Central Government also has to bear the loss
Apart from the state government, this will also cause a loss of about Rs 1 lakh crore to the central government, which is equivalent to 0.4 percent of GDP. In 2019, the total excise duty on petrol was Rs 19.98 per liter and that on diesel was Rs 15.83 per liter. But, the central government increased the excise duty twice in a year, due to which the price increased by Rs 32.98 per liter on petrol and Rs 31.83 per liter on diesel.
