Breaking News :

GST on Petrol-Diesel ?

9/19/2018

Now the Union Petroleum and Natural Gas Minister Mr.Dharmendra Pradhan has demanded that petrol and diesel should be brought under the GST. Earlier the Union Civil Aviation Minister Mr.Suresh Prabhu has demanded that the fuel of airlines the ATF (Aviation Turbine Fuel) should be brought under the GST for rate stability that is essential for fair determination. Due to constant fluctuation almost every day the airlines are incurring losses. Due to petroleum prices the Indian economy is passing through in period of stress. From November when the UN-US economic sanctions against Iran will come into force the situation will become very critical. India is importing 70 per cent of its petro crude requirements from Iran and is trying to get some sort of concession or relaxation in sanctions. The impact of coming sanction is visible in the oil price in the world. The oil refineries will reduce the petro crude imports from September-October and it will half the import obtained earlier. For reserve stocks the India imported enough crude during the April to August. After sanctions it will come down 1.2 crore barrel. The UN-US and other nations earlier on the same nuclear deal had imposed sanctions on Iran and after some settlement in 2015 lifted it. The US President Barak Obama finalized that deal. During his campaign for the US Presidency Mr.Donald Trump made it a poll promise to scrap nuclear deal with Iran and he did it. Now from November 4 the fresh sanction against Iran will become effective. Although India do not approve the US sanctions in Iran but to safeguard its other interest with the US, the India will accept and enforce if no relaxation can be worked out. The Petroleum Ministry on June last told the oil refineries to be prepared for sharp decrease in oil imports ever upto the point zero supply. Such eventuality will increase the prices of petrol and diesel abnormally high. Petroleum Minister Mr.Pradhan wants that the next meeting of the GST Council should take this situation into serious consideration and bring in petrol and diesel within the GST net. The GST Council consists Union Finance Minister and the Finance Ministers of all the States as members. The States are not allowing petroleum product under the GST as it is the major head of revenue of the States. Because of it the main objective of GST to create one national market and one price of all the commodities could not be achieved. The Central Government has approved the mix of ethnol in the petrol, it is produced by the sugar mills from sugarcane juice. It is also a point to be considered that due to ethnol production the sugar production will come down by 8 to 10 lakh tonnes.

Opinions expressed in the comments are not reflective of Central Chronicle. Comments are moderated automatically.

Related Posts