Petroleum to be brought under GST after consent of states: Finance Minister

Responding to a question on the roadmap for bringing petroleum and select products under GST, the minister told industry leaders at a conference organized by PHD Chamber that enabling provisions are already available for the same.

The minister said, “My predecessor had already kept the window open. After states agree, we will bring petroleum products under GST as well.” Currently, crude oil, petrol, diesel, aviation turbine fuel and natural gas are taxed by the Center and states under their respective laws—excise duty on production and value added tax on sale.

Sitharaman said these items continue to be in the old indirect tax regime, not because the Center does not want them in, but because it requires the concurrence of the entire GST Council, including central and state finance ministers. Sitharaman said it was not a matter of the council saying ‘yes’. Sitharaman said, “… what they have to do is to fix a rate and once they tell me the rate, we will subsume it in GST.”

Sitharaman also told industry leaders that the government had kept micro, small and medium enterprises in mind while formulating the budget, which also stressed on strong capital expenditure by the Center and maintaining the momentum of economic growth.

In a separate interaction organized by industry body Assocham, the minister said the government’s focus this year would be on its implementation. 10 trillion capital expenditure plan.

“This year, my thrust will be to reach the goal of 10 lakh crore is actually being absorbed through various projects in various ministries, and also through states, which have shown a very consistent appetite for getting grants on capital expenditure,” the minister said.