Central Govt is ready to bring petrol & diesel under GST

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Deal Subedar
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FM Nirmala Sitharaman announces that Central Govt is ready to bring petrol & diesel under GST

She said "It is up to the states to decide, come together and get petrol and diesel into GST"

"Once the states agree, they have to decide on the rate of taxation in the council. Once that decision is taken, it will be put into act" - FM NIRMALA SITHARAMAN
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Generous Generous
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Won't be happening. States won't agree as only few sources remain to fund freebies.

Deal Subedar Deal Subedar
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The central?! Govt short changes some states and don't provide necessary funds, even in the case of disaster relief.

The states use the tax on petrol and diesel to fulfill some on their needs that can't be met otherwise.

So it's doubtful they will agree.

But with elections for states in coming years, states might just cave under pressure.

Generous Generous
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Won't be happening. States won't agree as only few sources remain to fund freebies.

Deal Cadet Deal Cadet
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GST council decisions require 75% vote to pass, with CG having 33% vote only(i.e. veto power).

With the help of NDA state govts & UTs, every decision can be passed tomorrow itself, just show your good faith(no jumle baazi happening since a long time) & put the ball in their court.

( https://m.economictimes.com/markets/stocks/news...)

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Blaze Blaze
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india goberment 

Deal Cadet Deal Cadet
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What is wrong? It will bring uniform price all over the country. 
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Generous Generous
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Won't be happening. States won't agree as only few sources remain to fund freebies.

Deal Cadet Deal Cadet
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GST council decisions require 75% vote to pass, with CG having 33% vote only(i.e. veto power).

With the help of NDA state govts & UTs, every decision can be passed tomorrow itself, just show your good faith(no jumle baazi happening since a long time) & put the ball in their court.

( https://m.economictimes.com/markets/stocks/news...)

Wingman Wingman
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Even if petrol comes under GST they will open up a new tax rate like 50% to fill up the coffers.

Deal Subedar Deal Subedar
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Do you know how much it turns out to be adding up Excise duty (central) and VAT (state)? Its close to 62% on the base petrol price 😄

State's earn, on average 15% of their tax revenues from petroleum products.  
Central earn, on average 13% of their tax revenues from petroleum products.

This is huge amount for both the state and central govt. hence the reluctance and complications. 

They got to come to an agreement, say 30% GST on petroleum products, state gets 15% and Central gets 15% and we get petrol at 78/- to 82/- per liter.

Base Price including dealers commission - 60/- to 62/- per liter + 30% GST.
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Deal Captain Deal Captain
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Bringing under GST to make it more costlier.😂

Deal Captain Deal Captain
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Tax is already there called VAT.

Bringing in GST may be beneficial for govt. [ Easier calculation, track etc, maybe ]

https://cleartax.in/s/petrol-and-dies...ax

I am not expert so won't comment more.

Btw, STATES can completely cut their TAX which they take. Has any STATE done it ?

Wingman Wingman
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States won't accept that

That's why FM said it's up to the States...!

Deal Subedar Deal Subedar
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The central?! Govt short changes some states and don't provide necessary funds, even in the case of disaster relief.

The states use the tax on petrol and diesel to fulfill some on their needs that can't be met otherwise.

So it's doubtful they will agree.

But with elections for states in coming years, states might just cave under pressure.

Deal Subedar Deal Subedar
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only sensible comment in the whole thread.

the issue is paisa sara centre k pass jayga and states ko fir apna hi paisa centre se bhikario ki trah mangna padega...
ours is a federal country and too much centralization is bad....
Unless there is a mid way that states gets their money without any hassle, no state govt would accept the proposal...Even those states too where same party is ruling will not accept it
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Helpful Helpful
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It wont happen 

Deal Subedar Deal Subedar
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wont make sense if it comes into existance

The PostMighty The PostMighty
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The only way this is going to happen is if the states are 'bribed' in the short-term (i.e. at least next 3 years, if not 5).

That's exactly how all the states came onboard for GST as they were offered a guaranteed increase in their annual tax revenues from the Centre even if they did not actually achieve the increase. In other words, the Centre offered to subsidize any deficit.

Generous Generous
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Let them being their part under GST (basically lower slabs) and then let the states decide on theirs.

This is a good way of passing the buck to others and having fun!

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