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    Petrol and Diesel future inclusion in GST

    • March 24, 2021
    • Posted by: OptimizeIAS Team
    • Category: DPN Topics
    No Comments

     

     

    Petrol and Diesel future inclusion in GST

    Subject: Economy

    Context:

    Concept:

    • In 2017 when GST was brought in five commodities – crude oil, natural gas, petrol, diesel, and aviation turbine fuel (ATF) were kept out of it.
    • GST sought to subsume dozen central and state levies under a single tax structure.
    • This meant that the central government continued to levy excise duty while state levied VAT on these excluded items.
    • Recent price rise in fuel is also due to this tax structure.
    • The laws says that the GST Council shall recommend the date on which the goods and service tax shall be levied on these five commodities (so far no recommendation).
    • Including oil products in GST will not just help companies set off tax that they paid on input but will also bring about uniformity in taxation on the fuels in the country.

    About GST council:

    GST Council and Compensation cess – Optimize IAS

    economy Petrol and Diesel future inclusion in GST
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