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  Metros   Mumbai  25 May 2018  Fuel should be brought under GST; it will reduce prices: CM Fadnavis

Fuel should be brought under GST; it will reduce prices: CM Fadnavis

THE ASIAN AGE.
Published : May 25, 2018, 5:53 am IST
Updated : May 25, 2018, 5:53 am IST

The centre in June last year junked the 15-year old practice of revising rates every fortnight, and introduced daily revisions.

Maharashra CM Devendra Fadnavis
 Maharashra CM Devendra Fadnavis

Mumbai: Maharashra chief minister Devendra Fadnavis on Thursday announced that fuel should be brought under the GST regime, for which, a consensus among all states is required. Mr Fadnavis said that Maharashtra has already agreed to bring fuel under GST, which will reduce prices significantly.

Mr Fadnavis said, “A task force is already working on reducing fuel prices. If fuel can be brought under GST, rates will come down. Maharashtra has already given its consent to bringing fuel under GST. Other states have not given their consent yet. But the GST council will also have to look into aspects like revenue losses before taking any decision.”

 

“The Union government and the GST council are speaking to the finance ministers of all states. Once petrol and diesel are brought under the ambit of GST, its threshold will change, because currently, taxes upon taxes are being levied thereby increasing the rates. GST will ensure a single tax,” said Mr Fadnavis.

The centre in June last year junked the 15-year old practice of revising rates every fortnight, and introduced daily revisions. On Thursday, petrol and diesel prices rose for the 11th consecutive day as state-owned oil firms gradually passed onto consumers the increased cost of international oil accumulated since a 19-day freeze imposed just before the Karnataka elections.

 

Ever since the hiatus ended on May 14, rates have gone up by Rs 2.84 a litre in case of petrol and Rs 2.60 in case of diesel. Petrol costs Rs 77.47 per litre in Delhi and diesel Rs 68.53 per litre. The central government levies Rs 19.48 excise duty on every litre of petrol and Rs 15.33 on every litre of diesel. State sales tax or VAT varies from state to state. Unlike excise duty, VAT is ad valorem and results in higher revenues for the state when rates move up.

Tags: fadnavis, gst council, diesel