Natural gas and aviation turbine fuel (ATF) may soon come under the Goods and Services Tax (GST), while real-estate, petrol, diesel and electricity will take more time, ET Now reported quoting unidentified government sources. Both aviation ministry and petroleum and oil ministry have made a strong case for bringing ATF and natural gas under the GST.
However, the government may wait for revenue to stabilise before bringing more items under the new indirect tax regime. States are likely to give nod for natural gas and ATF, while not in favour of bringing petrol, diesel under the GST.
In November, industry body FICCI has asked Finance Minister Arun Jaitley to bring natural gas under the GST. A top revenue department official told PTI that as the Centre and states are assured of revenue flows, natural gas can be the next big item to be included.
“To me, it appears that out of the 5 petroleum products, natural gas is an easier candidate for bringing into GST,” he said, adding that a 5% GST, equivalent to that being charged on coal, will benefit states in reducing the price of CNG as well as cooking gas piped into kitchens.
While Arun Jaitley pitched for bringing petrol and diesel under the GST as well, he said it was a decision to be taken by states. “We don’t need to amend any law if petroleum products are to be brought into the GST, but only after the council takes a decision is when it will be introduced,” he had said, adding that the council was awaiting a response from states.
The ‘one nation, one tax’ subsumed at least 17 different central and state indirect taxes under one umbrella to cut tax evasions and reduce corruption.
Source- Financial Express
No comments:
Post a Comment