• Notification Date: 12-11-2021
• Notification No: 26/2021-22

Include petroleum products under GST purview to cut taxes on petrol, diesel: Nitin Gadkari

The GST Council on September 17 ruled out to continue keeping petrol and diesel out of the GST regime, as including the current excise duty and VAT (value-added tax) into one national rate will bring changes in revenues. Including petrol and diesel under GST regime will have caused a reduction in near record-high rates. Sitharaman, after the GST Council meeting in Lucknow, had said that “the Council discussed the issue only because the Kerala High Court had asked it to do so but felt it was not the right time to include petroleum products under GST”.

"It will be reported to the High Court of Kerala that it was discussed and the GST Council felt that it wasn't the appropriate time to bring the petroleum products into the GST," she had said. Replying to a question on the Centre's recent decision to cut excise duty on petrol and diesel by a record Rs 5 and Rs 10 per litre respectively to help bring down rates from their highest-ever levels, Gadkari said that the government has taken a good initiative to provide relief to the common citizens.

"The way the Centre has provided relief to the common man (by cutting excise duty on petrol and diesel by Rs 5 and Rs 10 per litre, respectively), there is an expectation that the states will also cut taxes (VAT rates) on diesel and petrol to provide relief to the common man," he said. Being under pressure, the government on November 3 decided to cut excise duty on petrol and diesel by a record Rs 5 and Rs 10 per litre to reduce the rates from their highest-ever levels. Several BJP-governed states and Bihar, where the BJP is a part of the ruling coalition, also reduced VAT rates, giving further relief to consumers. In recent months, crude oil rates have witnessed a global upsurge. Consequently, the prices of petrol and diesel went up high exerting inflationary pressure.

Reacting to allegations that the government cut excise duties on petrol and diesel keeping in mind results of the 30 assemblies and three Lok Sabha by-elections, Gadkari said: "For us, politics is an instrument of socio-economic reforms. And, we don't do politics to win elections."

He said the Indian economy is growing and the country has huge investment potential. "We need good infrastructure. We are constructing 38 km of highways a day," said Gadkari adding that the government has given high priority to well infrastructure.