There is going to be relief from the rising price of petrol and diesel. The central government has given big information about this. Petroleum and Natural Gas Minister Hardeep Singh Puri said on Monday that the central government is ready to bring petrol and diesel under the ambit of the Goods and Services Tax (GST), but there is little chance of agreement with the states on this. Puri said that the consent of the states is necessary to bring petrol and diesel under the purview of GST and if the state governments agree on this then the Center is also ready for it.
It is clear from the statement of the Union Minister that the Center has completely blamed the entire matter on the state governments. That is, if the state governments agree, then petrol and diesel can come under the purview of GST, which can curb its rising price.
Union Minister said big thing
Union Minister Hardeep Singh Puri said, ‘We have already been prepared for this. This is my understanding. The second issue, however, is the way it is implemented. That question should be raised with the Finance Minister. There is little chance of a consensus being reached between the states. The main source of income for the states is the tax on liquor and petroleum products.’
Hardeep Puri said, ‘It is not difficult to understand that the states get their revenue from them. Why would the revenue earner want to leave it? Only the central government is concerned about inflation and other things. Referring to the decision of the Kerala High Court, he said that the matter was suggested to be taken up in the GST Council but the finance ministers of the states did not agree to it. As far as GST is concerned, we or your wishes have their place, we are part of a cooperative federal system.
Why not petrol and diesel in GST?
The loss in revenue to the states is the main reason behind not bringing petrol and diesel under GST. Even if the state governments take petrol and diesel under the purview of GST and keep these two oils in the highest tax slab of GST, they will still have to bear a huge loss on earnings. This is the reason why the state governments are not agreeing to bring petrol and diesel under GST.
Petrol and diesel prices will decrease
On the reduction in the prices of petrol and diesel, Puri said, ‘I am surprised by your question. The least increase in their prices in the last one year has probably happened in India itself. Morgan Stanley is also saying that India has been in one of the best positions in the world. He said that India has protected itself from the impact of rising crude oil prices by taking steps like cutting excise duty. He said, I do not answer hypothetical questions, but the effort of the central government will be to keep the prices stable.
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