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Natural gas, jet fuel may appear under GST

by Estartup India Grow Business With Us

The issue has been raised by the main leadership, members of Parliament (MPs) and the industry, a proposal to levy GST on petroleum merchandises and its dividend significances for the Centre and states would be worked out and placed before the GST Council soon, which will take an ultimate call on this matter, they said requesting anonymity. In this article, we will talk about Natural gas, jet fuel may come under GST.

Natural gas, jet fuel may appear under GST

At least two petroleum items – natural gas and aviation turbine fuel (ATF) – could be brought under the Goods and Services Tax (GST) net to facilitate a gas-based economy and to provide an incentive to the pandemic-hit aviation sector after the GST Council’s approval, two people aware of the development announced on Friday.

As the issue has been put up by the top leadership, members of parliament (MPs) and the industry, an undertaking to levy GST on petroleum products and its revenue implications for the Centre and states would be calculated and placed before the GST Council soon, which will take a final call on this matter, they asserted requesting anonymity. Five petroleum commodities – crude oil, natural gas, ATF, petrol and diesel are outside the GST structure. 

The government is dedicated to bringing natural gas under the GST registration as uniformity of tax would organize a reduction of the cost of natural gas and expand its usage across industries. There is no central excise on natural gas in its gaseous form, but consolidated natural gas entices 11% duty. Value-added tax (VAT) on natural gas, however, varies depending on from state to state in the range of 6% to 24.5%.

After several MPs brought up the question of giving rise to petroleum commodities under GST, the finance minister assured them that the matter would be placed before the GST Council.

Additional Notification by Central Government

Additional a point has been brought up about bringing diesel and petrol under GST. Also, the Central and state taxes on petroleum products contributed over ₹5.55 lakh crore in 2019-20, and diesel and petrol are the two biggest revenue earners in that order.

In a memorandum to the government to furnish relaxation to pandemic-hit sectors, the Confederation of Indian Industry (CII) proposed. 

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Created on Apr 13th 2021 06:49. Viewed 82 times.

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