Bengaluru: Karnataka will join a number of countries to oppose proposals to carry gasoline and diesel into the display of goods and services (GST) because there are lower changes.
The GST board is scheduled to meet in Lucknow on Friday.
The Karnataka government has also decided to request a center to provide GST compensation for two more years.
“We will ask the center to continue to compensate because we need time to recover from an economic slowdown caused by Covid-19 pandemic.
We will present our case with the right data,” said the Chairman of the Bukavara Bomai Minister, who holds a financial portfolio.
Bommai has authorized commercial tax commercial commissioners C Shikha to attend the Friday meeting of his name because he is scheduled to take part in the celebration that marks the release day of Kalyana Karnataka.
Bommai has provided two letters to Shikha: One contains a request for a longer compensation period and details the view of the carnataka about the GST proposal for fuel.
The central government is exploring the last option to control high fuel prices.
Have asked the state to share their opinions about this problem, which will be discussed at the GST Board.
The Kerala High Court also requested the center to make the right decision.
Experts have independently suggested the tax structure remains separate for fuel.
“Not only Karnataka, almost all countries are worried about revenue implications and they will oppose proposals.
But it is a very much needed reform in the long run,” said BT Manohar, member of the GST Council of the State of Karnataka.
Experts say moving gasoline and diesel under the GST system will ease the consumer burden because the retail price will drop.
For example, one liter of gasoline in Karnataka currently draws taxes of RS 59 – RS 32.9 additional central excise (AED) and 35% state sales tax for the number of basic prices (Rs 41.8) and AED.
In GST, there will be a maximum tax of 28% at the base price of gasoline and as a result, the retail level will be reduced from Rs 104.7 per liter to RS 59.2 (including the RS Dealer Commission 3).
Similarly, the price of diesel will fall from Rs 94 per liter to Rs 50.
However, both the state and the center will lose a lot of income because they must share 28% the same.
The average monthly income of Karnataka is expected to decrease from 1,500 crore Rs to 600 Crore Rs if GST Switch occurs.
“An effective alternative is a fixed tax regime, where certain taxes are collected in one liter of motor fuel, regardless of basic prices.
This is very important, given the nature of fluctuations from the base price, which is a function of crude oil prices in the international market,” said Km Basave Gowda, President of the Association of Dealer Petroleum Akhila Karnataka.