Lucknow: After keeping petroleum products out of GST for four years, this center is now looking for a timeline to put it in a new tax regime – a step set to trigger anger protest from the state, report Neha Lalchandani and Sidhartha.
“We did not say that we had to bring gasoline and diesel under GST immediately, we basically asked the state to suggest the timeline,” said a government source to Ti ahead of the important GST council meeting here on Friday.
Finance Minister Union Nirmala Sitharaman will lead the 45th meeting, the first physical crowd after more than 16 months.
GST on fuel will help companies claim credit input for a very strong body, which determines the level and policy for a new indirect tax regime and consists of state and union finance ministers, has 18 main problems listed in the agenda.
Countries, cutting party lines, look reluctant to agree to shift automatic fuel and flights to GST, far from the value added tax regime, because they will lose any control they have for income.
After the introduction of GST in July 2017, the country now has the power to decide on VAT on fuel along with alcohol excise.
During the Covid crisis, state and center, use two product groups to produce resources.
From the point of view of consumers, Retvying GST on fuel is not possible to produce a sharp decline in taxes, which currently reaches the top 50%, but will help businesses get credit for taxes paid in input.
Although there is a high court order on this issue, the controversial compensation formula can also play a role and will definitely divide the council, which has become a late house that is shared with countries governed by the varying opposition.
The GST council will also discuss extension of concession levies on several covidrelated drugs and products until December.
Furthermore, there are several items related to textiles, footwear and fertilizers where the center is looking for correction in the reverse task structure – where the product is facing higher levies than input.
While the problem has been on the agenda for more than a year, the government wants to get a resolution this time, said the source.
Another aspect of rates, something that has been suggested by the center at the beginning of 2020 has been kept away from the agenda for now.
Other things being discussed are using a PAN card for registration under GST.