GST Council may consider folding fuel sales under its regime – Times of India

New Delhi: The Goods and Services Tax (GST) Council will consider taxing petroleum products under a national rate, according to people familiar with the matter, opening the door for a potentially big change in consumer prices and government revenue.
The panel, headed by Finance Minister Nirmala Sitharaman, will examine the proposal in its meeting on Friday, when the court asked to take up the matter, the people said, adding that the request to be recognized as the agenda of the meeting is not public. .
A spokesperson for the finance ministry did not immediately respond to calls for comment.
Any change to the GST system would require approval from three-quarters of the panel, which includes representatives from all states and territories – some of whom have opposed the inclusion of fuel in the system as they are a major revenue-generating entity. Will hand over equipment. to the Central Government.
The move for a uniform levy for fuel, which was discussed earlier by a news agency, will help bring down the prices of gasoline and diesel, mainly due to taxes levied by the central and state governments in recent months. Testing records.
Levies make up more than half of fuel costs in the country, a sore point for the inflation-targeting Reserve Bank of India as it seeks to keep borrowing costs down to support the economic recovery from the pandemic. Diesel and gasoline consume more than half of the country’s fuel.
People said that in its meeting on Friday, the GST panel plans to consider giving concessions for another three months till December 31 on certain drugs used in COVID-19 treatment.
He said that the government will also present options to states to compensate their GST losses after next year.
The agency had pointed out that the panel would probably also consider increasing the GST on certain renewable equipment to 12% and on iron, copper and other metal ores and concentrates to 18%.