Petrol, diesel, aviation turbine fuels, gasoline, and high-speed diesel are derive from petroleum. Gasoline, natural gas, aviation turbine fuel, and motor spirit are not subject to GST. Nevertheless, the taxes for these products are attracte by the structure before the introduction of GST. Suppose India’s motorists expecte a decrease in fossil fuel prices and were prepare to keep waiting and pay wallet-busting prices. The market buzz is that petrol and diesel fuel could be brought under the Goods & Services Tax (GST), reducing prices. However, this isn’t going to happen.
Will petrol and diesel come under GST in India – Petromart
Nirmala Sitharaman, the finance minister, told PTI that the GST Council felt petroleum products weren’t ready for GST. Earlier yesterday, the GST Council discussed whether petrol and diesel fuel should be included under GST, following a PIL from the Kerala High Court. Since Petrol and diesel generate massive revenues for the Central and state governments in the form of taxes, bringing them under GST continues to be a contentious issue.
Fuels with high taxes: Petrol at 55%, diesel at 50%
With the current taxes on Petrol and diesel – Central and State – you can see why Indian motorists continue to spend a great deal on fuel. In Delhi, today (September 18), for instance, a liter of gasoline costs Rs 101.19, of which 32.51% (Rs 32.90) constitutes excise duty, and 23.07% (Rs 23.35) represents state VAT (value added tax). The two taxes are clubbe, and motorists pay Rs 56.25 or 55.58 % on each petrol liter. In the case of diesel, which costs Rs 88.62 a liter, the excise duty component is Rs 31.80 or 35.88%, whereas the VAT component is Rs 12.96 or 14.62%. A motorist pays Rs 44.76 for diesel when paying the two taxes together, which accounts for 50% of the price of the fuel.
Benefit of new GST Regime on Petrol
Petrol and diesel excise duty brought Rs 334,894 crore to the Centre in FY2021. In his recent fuel pricing analysis, Petromart. Professionals explain that from the Centre’s perspective, it is all too obvious that Petrol and diesel contribute a significant part of its revenue streams, especially since GST collections aren’t doing so well. Additionally, the financial fragility of states makes levying value-added tax on auto fuels even more pertinent. The customer suffers silently amid a difficult Covid period while everyone is concentrating on generating revenue.
Conclusion
Furthermore, the federal government – as well as state governments – is aggressively promoting the use of electric vehicles and electric mobility. The Indian government’s recently announced PLI Scheme for India Auto Inc, with an outlay of Rs 26,058 crore, has dramatically boosted the EV industry. Delhi, Maharashtra, Tamil Nadu, Telangana, Rajasthan, Assam, and Kerala have introduced subsidy- and incentive-laden EV policies. Our dealership specializes in fuels, lubricants, and petrochemicals. We thrive in our business as a result of our goodwill and trustworthiness. So, if you are intereste in a dealership then connect with our company PetroMart.