GST Council meeting: Two-day gathering commences in Chandigarh, Will Petrol-Diesel come under new tax regime?

Jun 28,2022

GST Council meeting: Two-day gathering commences in Chandigarh, Will Petrol-Diesel come under new tax regime?

GST council meeting: The two-day meeting of the GST Council is taking place in Chandigarh. The meeting is being chaired under Union Finance Minister Nirmala Sitharaman on June 28-29. According to sources, a decision can be taken on reducing and increasing the rates of many products and services, including changes in the slab of GST. Many are hopeful that this time apart from petrol and diesel, a decision should be taken on bringing liquor under GST. However, there is no official word on these developments.

Petrol diesel will come under GST?

The GST Council may consider bringing petroleum products under the purview of GST.

Before the meeting of the GST Council, the chairman of the Economic Advisory Council to the PM, Vivek Debroy, has expressed the possibility of including petrol and diesel under the ambit of GST.

Vivek Debroyen has advocated that bringing petrol and diesel under the purview of GST will make it possible to curb rising inflation.

During the debate on Finance Bill 2021, BJP MP Sushil Modi had said that this would collectively cause an annual loss of 2 lakh crores to the states.

Whereas Petroleum Minister Hardeep Singh Puri said that the Centre will be happy if petrol and diesel are brought under the purview of GST.

If petrol comes under GST

Rate change of many products may take place

There is a possibility of changes in the tax rates of many products and services.

In a recent meeting of the Group of Ministers, besides online gaming, horse racing and casinos are considered harmful services and 28 percent GST has been recommended on them.

Apart from this, staying in a budget hotel can also become expensive.

The GST Council may increase the GST rates on the cost of hospital stay, water pumps and household utensils. A committee headed by Karnataka CM Basavaraj Bommai has recommended increasing the rate of GST on several products and services.