What Happens If Petrol Comes Under Gst
The current tax regime allows the Government as. Bringing petroleum products under the GST regime will make the fuels cheaper.
Government Told Petroleum Products Come Under Gst 24 India News Gas Station Petrol Price Gas
The reason behind apposition is the income from tax collected by petrol and diesel is high.
What happens if petrol comes under gst. With prices of petrol and diesel sky-rocketing the clamour for bringing petroleum products under the Goods and Services Tax GST grows louder once again. Its full responsibility is being laid on the taxes of the Central and State Governments. It is generally believed that if the.
Assuming that fuel is charged even under the highest tax slab of 28 per cent the prices of petroleum products will fall sharply. SBI economists believe that the central and state governments do not want to bring petrol and diesel under GST as it is a major source of their revenue. If we talk about GST rate of tax is maximum 40 excluding cess so if PD will come under GST then tax collection of government will reduce and price will get cheaper so government dont want to lose their revenue.
Sitharaman found support from the Reserve Bank of. As fuel prices move up or down inflation follows in the same direction. In case the fuel prices are brought down and if the fuel prices come under the ambit of GST the loss on revenue combined would be 04 of the GDP.
Due to this the price of petrol has also crossed Rs 100 per litre in some parts of the country. In Mumbai petrol prices touched Rs 80 a litre while in Delhi it is over Rs 70 per litre. The total levies put together are nearly 60 said the source adding that If the central levy and dealers commission is added the amount goes up to nearly 100 over the.
Currently petroleum prices change on a daily basis. Consumers will be able to buy the fuels at rational prices across the country if they are charged under GST. Inclusion of petrol and diesel under GST can lead to lower fuel prices which in-turn can pull down inflation rate.
This is the reason that the Minister is advocating for the inclusion of petroleum products under the. Assuming that the government brings petrol prices under 12 percent GST bracket then petrol price could come down to Rs 381 in Delhi while at. Demand to include Fuel in GST.
GST on petrol diesel According to SBI economists price of fuel will come down if it is brought under the ambit of GST. Crude oil matrix and revenue definition. And if petrol comes under GST state government would not get any tax from it so it is near.
It was August 2014 when petrol prices breached Rs 70 mark the last time. If petrol is brought under GST it may cost as little as Rs 3810 in Delhi at 12 per cent GST rate. If petroleum is brought under GST both the taxes would be merged and fuel prices across the country would be uniform.
SBI economists arrived at the rates after assuming global crude oil prices to be at 60 a barrel and exchange rate to be around Rs 73 per dollar. If price is 78 for P then 38 rs is taxes of central and state governments and 38 is value of petrol. If petroleum products are brought under the GST 28 tax would be collected on them as that is the highest slab in the tax regime.
What happens if petrol and diesel is brought under GST If petrol and diesel are brought under Goods and Service Tax then there would be a loss of Rs 2 lakh crore revenue to states. In this video we are going to learn what will happen to the fuel prices of petrol and diesel if it is brought under GST. We did a lot of simulations and found out that based on the current base case scenario at crude prices exchange rate if petrol and diesel were bought under GST at the highest tax bracket of 28 where the centre gets 14 and the states get 14 but with also a cess on petrol and diesel with the cess on diesel being lower than that of the petrol then petrol prices could be at Rs 75 and diesel at Rs 68.
This can have a direct impact on gross house-hold savings and people can have higher investible surplus. Satate government would never pass this bill of bringing petrol and diesel under GST. For instance if 28 per cent GST is levied upon the dealers base price of Rs 3070 the consumer will have to shell out Rs 3930 for.
He further added that as petrol and diesel are not under the GST framework yet producers are not able to set off the tax paid on inputs from the final tax and this increases the prices. The end consumer suffers. The current tax structure on petroleum oil and lubricants POL products has led to multiple taxes making prices in India one of the highest in the world.
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