INSUBCONTINENT EXCLUSIVE:
Nirmala Sitharaman led panel may consider bringing fuel products under GST regimeThe Goods and Services Tax (GST) Council might on September
and state finance ministers, in its meeting scheduled in Lucknow on Friday, is also likely to consider extending the time for duty relief on
Coronavirus essentials, according to sources in the know of the development.GST is being thought to be a solution for the problem of
near-record high petrol and diesel rates in the country, as it would end the cascading effect of tax on tax (state VAT being levied not just
on the cost of production but also on the excise duty charged by the Centre on such output).In June, the Kerala High Court, based on a writ
petition, had asked the GST Council to decide on bringing petrol and diesel within the goods and services tax (GST) ambit.Sources said
bringing petrol and diesel within GST would be placed before the Council for discussion in the light of the court asking the Council to do
central and state government finances relied heavily on taxes on these products.Since GST is a consumption-based tax, bringing petro
products under the regime would have mean states where these products are sold get the revenue and not ones that currently derive the most
benefit out of them because of they being the production centre.The GST Council, chaired by Finance Minister Nirmala Sitharaman, in its
September 17 meeting could also discuss the modalities of continuation of compensation cess beyond June 2022.This is the first time in 20
months that the GST Council will have a physical meeting
The last such meeting was on December 18, 2019, before the pandemic-induced lockdowns.
