Finance Ministry Planning to Include Petroleum Products under GST in Phases | CORPORATE ETHOS

Finance Ministry Planning to Include Petroleum Products under GST in Phases

By: | July 7, 2018
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July 7: The Union government is planning to bring petroleum products under the Goods and Services Tax regime in phases. Finance Secretary Hasmukh Adhia has confirmed the matter, adding that the modalities will only be finalized by the GST council.

Bringing petroleum products under the GST scope has been a demand that has been raised from almost all major corners of the country. Finance Secretary has acknowledged the same, but said that the process will be happening in stages.

He also spoke about the automation of refund, regarding which he said that the mistakes made by people in filing the return had caused for the switch to manual mode at the last moment, despite the intent being to get it automated from day one.

He also said that there was still scope for more to be done in the existing system. “We still believe that we need to do a lot more and we are working in that direction,” Adhia said.

At present, petroleum products like diesel, petrol, crude oil, natural gas and aviation turbine fuel are outside the purview of goods and services tax, with states having the right to impose value added tax on the products.

The civil aviation ministry has concerned about the high rate of taxes on aviation turbine fuel, and has also informed the finance ministry regarding the same. The demand is to include jet fuel under the indirect tax regime with full input tax credit at the earliest so as to bring down the operational costs.

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