New Delhi: Tax Council of Goods and Services (GST) will consider oil products under a single national level, according to people who are familiar with this problem, opening doors for potential major changes in consumer prices and government revenue.
The panel, led by Minister of Finance Nirmala Sitharaman, will examine the proposal at his meeting on Friday after the court asked for the problem to be taken, said people, asking not to be identified as the agenda of the meeting was not published.
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A spokesman for the Ministry of Finance did not immediately respond to a call for comments.
Every change in the GST system will require approval by three quarters of the panel, which includes representatives of all states and regions – some of which have refused to include fuel into the system because they will submit the main income maintenance tool to the central government.
Moving to uniform retribution for fuel, previously reported discussion by the news agency, will help soften the prices of gasoline and diesel, which have tested records in recent months, especially because of the state tax and state government.
Retribution made more than half the cost of fuel in the country, the pain for the inflation reserve of Bank of India for trying to maintain low loan costs to support the economic recovery of pandemics.
Diesel and gasoline forms more than half of the country’s fuel consumption.
At the meeting on Friday, the GST panel also planned to consider extending the concessions of several drugs used in Covid-19 treatment for three months until December 31, said those people.
The government is also likely to present the option on state compensation for their GST losses outside next year, they added.
The panel may also see an increase in GST to 12% on several renewable equipment and 18% on iron, copper and metal ore and concentrates, the institution has reported.