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If petrol, diesel and other petroleum products are brought under the single nationwide GST regime, then taxes will reduce further, and both the Centre and states can generate more revenue, said Union minister Nitin Gadkari on Wednesday. 

He said that Union finance minister Nirmala Sitharaman will try to bring petrol and diesel under GST if she gets the support of the state governments.

“In the GST Council, finance ministers of states are also members. Some states are against bringing petrol and diesel under the GST regime," Gadkari was quoted as saying by news agency PTI.

"If petrol and diesel will be brought under the GST regime, then taxes on these products will be reduced and revenue of both the Centre and the states will increase," he added. 

GST council on petrol, diesel inclusion 

The GST Council on 17 September had decided to continue keeping petrol and diesel out of the GST purview, as subsuming the current excise duty and VAT (value-added tax) into one national rate will impact revenues.

Sitharaman, after the GST Council meeting in Lucknow, had said the Council discussed the issue only because the Kerala High Court had asked it to do so but felt it was not the right time to include petroleum products under GST.

"It will be reported to the high court of Kerala that it was discussed and the GST Council felt that it wasn't the time to bring the petroleum products into the GST," she had said.

Gadkari on excise duty cuts 

Speaking about the Centre's decision to cut excise duty on fuels, Gadkari said the government has taken a good initiative to provide relief to the common man.

"The way the Centre has provided relief to the common man (by cutting excise duty on petrol and diesel by 5 and 10 per litre, respectively), there is an expectation that the states will also cut taxes (VAT rates) on diesel and petrol to provide relief to the common man," he said.

Buckling under pressure, the government on 3 November cut excise duty on petrol and diesel by a record 5 and 10 per litre to help bring down rates from their highest-ever levels.

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