Once states agree, petroleum will be brought into GST: FM
2 min read . Updated: 15 Feb 2023, 09:49 PM IST
Premium- Sitharaman says the government had kept micro, small and medium enterprises in mind while making the budget, which also emphasised on strong capital expenditure by the Centre and sustaining eonomic growth momentum
GULVEEN AULAKH, NEW DELHI : Once states make up their mind on the timing of including crude oil and select petroleum products in Goods and Services Tax (GST) and determine a tax rate, these will be subsumed into the new indirect tax system, finance minister Nirmala Sitharaman said at an event today.
In response to a question on the roadmap for bringing petroleum and select products within GST, the minister told industry leaders at a conference organised by the PHD Chamber that the enabling provision for the same is already available.
"My predecessor had already kept the window open. Once the states agree, we will have the petroleum products also covered under GST," the minister said. At present, crude oil, petrol, diesel, aviation turbine fuel and natural gas are taxed by the Centre and states under their respecrive laws-excise duty on production and value added tax on sales.
Sitharaman said that these items are continuing in the old indirect tax regime not because the Centre does not want them in, but because it requires the concurrence of the entire GST Council, comprising central and state finance ministers. Sitharaman said that it is not about the Council saying 'yes'. "...what they have to do is to determine a rate and once they tell me the rate, we (will) get it into the GST," Sitharaman said.
Sitharaman also told the industry leaders that the government had kept micro, small and medium enterprises in mind while making the budget, which also emphasised on strong capital expenditure by the Centre and sustaining eonomic growth momentum.
At a separate interaction organised by industry body ASSOCHAM, the minister said that the government's emphasis this year wil be to execute the ₹10 trilion capital expenditure plan.
"This year, my emphasis will be to reach the target of ₹10 lakh crore actually getting absorbed through various projects in the different ministries, and also through the states which showed a very consistent appetite for receiving grants on capital expenditure," the minister said.