Petrol can be cheaper rs 25 per liter only due to one decision !
The decision of inclusion of petrol in GST can give a great relief to public.
As you all know, india imports about 90 percent of its oil needs of crude oil. India spends lots of foreign exchange in importing oil. Crude oil prices depend on the policy of the OPEC countries and international politics. Due to these reasons, the prices in india is of oil continue to be low or high. For your information, let you know that petrol and diesel are out of the GST at this time.
Central goverment leives its tax on petrol-diesel, and the state goverment impose a tax on its own, due to which the central and state goverment earns a lot of revenue by taxing on petrol and diesel. But there is a demand for a long time that petrol should also be included under the GST, which could reduce its prices and it will reduce the burden on the general public. The ASSOCHAM ( the associated chambers of commerce and industry of india) has once again demanded to include petroleum products in the GST. The ASSOCHAM argues that if petroleum products are included in the GST, then the price of petrol can be significantly reduced.
For you information, let you know that one litre petrol is paid as VAT of 35.56 rupees as exice duty and VAT in delhi. The dealer gets the commision of rs 3.57 per litre and VAT is also charged on dealer commision. With addition to these tax, The price of one litre of pertrol is greatly increased. According to the information, the tax imposed on one litre petroleum is same as the actualy price of petrol.. The prices of both petrol-diesel is incresed at all levels from refinery to the customer. Firtsly central goverment imposes excise duty on petrol-diesel. After that state goverment imposes VAT. After that dealers commision is added to it. Due to this the price level changes from low to high.
However if the petrol-diesel is brought under the purview of GST, then the common people can get that at affordable rates, but it will cause a significant loss of revenue on centgral and state goverment.People associated with petroleum sector say that if petrol products are brought under the GST, then even if the highest rate of GST (28%) is imposed on it, then the price of petrol will greatly be reduced. If this will happen then price will reduced from 75 to 50 per liter.
Although since long time its under the topic that it should be under the GST slab or not but its also not that easy to to remove GST from petrol-diesel. Only central goverment by itself cant decide that wheather the prices should be come under GST or not and the decision cshould also be taken by the GST council meeting.
As we told you earlier that the Central Government and the State Governments all get the huge revenue by imposing tax on petrol-diesel. In such a situation, whether the Central Government or any State Government will agree that petrol should be brought under the purview of GST, because by including the petrol in the GST, a large number of Government's income will be stopped.
However, there is no loss to the Central Government and the State Governments by putting petrol in the GST. The Central Government and the State Governments will get a lot of tax on petrol, but they will not get as much tax as they are getting due to petrol being not including in the GST at present. There are discussions from time to time that in order to give relief to the general public, at least petrol can be brought under the purview of the GST, but any kind of consent regarding this is not yet between the Central Government and the State Governments. Now, while ASSOCHAM has demanded that petroleum products should be brought under the purview of GST, then it has to be seen that what will be the stand of governments about this?