What Will Happen if Petrol is Brought Under GST?

Nitin Gadkari, who is a Union Minister and senior BJP leader, is well-known for project management qualities. He is of the opinion that bringing both diesel and petrol under the purview of the present tax framework, which is Goods and Services Tax (GST), will bring down the revenue for the Central Government. According to Dharmendra Pradhan, who is the current Oil Minister, said that imposing the system of GST will reduce the prices of petrol and diesel by 50%. The opinion of the Minister of Maharashtra, Devendra Fadnavis, is completely different. He said that bringing these two widely used fuels under the GST structure is an ideal option to reduce unstoppably soaring fuel prices in India. Check for Petrol price in India

How does GST impact fuel prices? Here is a explanation. GST is presently charged at 5%, 12%, 18% and 28%. The products and services have been classified to collect GST. On petrol per litre, the VAT imposed in Delhi currently is 27%. The price charged to fuel dealers is Rs.37.89. After adding the excise duty of Rs.19.48, the dealer’s commission of Rs.3.63% and VAT, the retail selling price of petrol per litre in Delhi will be Rs.77.47. When GST is charged on petrol, the selling price in Delhi will fall by Rs.22. Mumbai is the costliest city as far as petrol prices are concerned. The selling price of petrol per litre in the city will downfall by Rs.32 as VAT is higher than the highest GST slab.

Many people are of the opinion that the country will benefit when petrol is brought under GST. It makes fuel prices cheaper especially for the fuel users in Maharashtra and West Bengal. The concept of one country one tax will become the reality. Finally, the government has to take a call on this issue.