BusinessWith GST, petrol will be reduced to Rs 75 per liter and...

With GST, petrol will be reduced to Rs 75 per liter and diesel to Rs 68 per liter

GST to join on Friday Everyone’s attention is moving towards the council meeting. It remains to be seen whether fuel prices will be included in the GST. SBI has said that even if fuel prices are included in the highest slab of GST, petrol will be reduced to Rs 75 per liter and diesel to Rs 68 per liter. Evaluation of economists. Although international oil prices fell during the Kovid period, consumers did not benefit from the increase in excise duty. In India, petrol and diesel prices fluctuate daily based on international oil prices. The advantage is that this method will continue even after GST. This is because no other tax can be levied on a product that is subject to GST. Even if it is possible now, it will be nominal. Saudi Aramco, the world’s largest oil company, last week cut oil prices for Asian markets by one percentage point. But companies have not yet passed on this benefit to consumers. Criticisms are coming from all over the country against the companies’ move to delay concessions and make a profit. Also Read: States including Kerala have publicly stated that they will not support the inclusion of petrol and diesel prices in the GST. While fuels are the main source of revenue for state governments, the meeting will know which states will support the Center. Meanwhile, the Center is trying to include fuel prices in the GST. Fuel inflation continues to be a double-edged sword over the head of the central government. With 70 per cent support, the Center will be able to include fuel prices in the GST. With this, there will be a huge reduction in the current petrol and diesel prices. This will lead to a sharp fall in the revenue of the states. There are indications that only a section of petroleum products may be brought under GST to appease the states. At present, petrol and diesel prices are at record highs in the country. In all the states, petrol is above Rs 100 per liter. With the relaxation of Kovid restrictions, people are returning to offices. This will further increase the demand for fuel. It is estimated that prices will rise further if demand increases. Things will be difficult for the common man, who is reeling under inflation. After a two-month low, inflation soared in August. At present, 60 per cent of petrol price and 54 per cent of diesel price are various central and state taxes. In addition, some state governments levy taxes, cess, VAT, and surcharges on income. Fuel prices are determined by international oil prices and the dollar-rupee exchange rate. Crude is currently trading at around $ 74 a barrel in international markets. For the financial year ended March 31, 2020, the revenue of the Central and State Governments from petroleum products was Rs 556 lakh crore. Including petroleum products in the GST would reduce GDP revenue by 0.4 per cent.


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