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Petrol and diesel under GST: As soon as the government was formed, the Petroleum Minister said something important: will petrol and diesel really come under the ambit of GST?

Sagar Patel

By Sagar Patel

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Petroleum Minister Hardeep Singh Puri

Following the Lok Sabha elections in the country, a new ‘Modi 3.0’ government has been formed under the leadership of Prime Minister Narendra Modi. Furthermore, the ministries have also been divided among 72 ministers. Hardeep Singh Puri was once entrusted with the responsibility of the Ministry of Petroleum and Natural Gas and as soon as he assumed charge, he made a big announcement.

Union Minister Hardeep Singh Puri says this time the central government will try to bring goods like petrol, diesel and natural gas under the ambit of Goods and Services Tax (GST). This will provide great relief to the common people.

Attempts have been made before

This effort to bring fuels like petrol and diesel under the ambit of GST is not new. Efforts are being made for this since the coming into force of the GST system and the subsequent formation of the GST Council. This issue has been raised in almost every meeting of the GST Council. But a consensus has not yet been reached among the states on this matter.

VAT on petrol and diesel is a major source of revenue for the state government. In such a situation, state governments do not want to face revenue losses due to petrol and diesel being subject to GST. Apart from this, states also get their main revenue from taxes on alcoholic beverages.

However, Finance Minister Nirmala Sitharaman had said in November last year that customers will benefit more by bringing petrol and diesel under the ambit of GST. At the same time, people will not have to pay different prices for it throughout the country.

20% Ethanol Blend Target

Besides bringing petrol and diesel under the ambit of GST, Petroleum Minister Hardeep Singh Puri said the government had set a target of blending 20 per cent ethanol in petrol by 2030, but it is now expected to will be completed only next year i.e. 2025. . with a little luck. Further, he said the government is not in favor of selling stake in PSUs in the oil sector.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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