Centre wants GST on fuel: ArunJaitley 

Centre wants GST on fuel: ArunJaitley 

Context

The Centre favours including petroleum products within the ambit of the Goods and Services Tax (GST), but it would want a consensus among the States before taking such a step, Union Finance Minister ArunJaitley told the RajyaSabha on Tuesday.

Finance Minister, however, says a consensus from the States is required before taking such a step

• During Question Hour, Congress leader and former Finance Minister P. Chidambaram sought to know the Centre’s position on bringing petrol and diesel under the GST.
• He also sought to know why the prices of petrol and diesel did not decline with a fall in the global crude prices.

‘Issue a deal-breaker’

• He said the previous UPA government in its draft GST Bill had kept petrol out of its ambit as it knew that the issue would be a deal-breaker between the Centre and the States.
• He said the present government had persuaded the States to include petrol within the GST and the States reluctantly agreed to do so
• However, it is only when the States demanded it and a consensus was formed, that it would be done.

Duties Imposes by the States

• Responding to the charge that petrol and diesel prices were not coming down in line with global prices, Mr.Jaitley said it has to be kept in mind that a large number of duties on these products were imposed by the States.
• On the Centres advice, many States had brought down these taxes but those ruled by the UPA (Congress and its allies) had not done so.