Business & Finance

Petroleum Products to be Charged as per GST in Future

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Goods and Services Tax which took the country by storm after its implementation on 1st July, 2017 has been the topic of debate for many experts. As of recent development, Finance Secretary Hasmukh Adhia has said that all petroleum products will slowly be inducted under GST in phases.

The Central Board of Indirect Taxes and Customs Chairman, S. Ramesh has spoken on this issue stating clearly that although the demand for bringing petroleum products under GST is high, the GST council will have to finalise the modalities. In the current scenario diesel, petrol, crude oil, natural gas, aviation turbine oil are outside the  goods and services tax and the states who have the right to impose value have done so on their own terms.

Adhia has however stated that the change will not be done overnight but come in stages. The civil aviation ministry has complained time and again regarding the high taxes on aviation turbine fuel which not only adds a significant portion to the aviation industry’s operational but also has a bearing on flight fares.

The aviation ministry had earlier requested the finance ministry to include jet fuel under indirect tax regime with full input tax credit. Adhia said that automation of refund is something that they are trying to implement once again. According to him, it was supposed to be automated from the very beginning but due to a cascade of errors by employees, it was made manual. The GST currently has four slabs – 5%, 12%, 18% and 28%. The petroleum goods are soon to be inducted under these slabs.

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