Home >News >India >Glad to discuss inclusion of petrol, diesel in GST: Nirmala Sitharaman

New Delhi: The Central government is open to discussing inclusion of petrol and diesel in Goods and Services Tax (GST) if states bring up that topic in the GST Council meeting, finance minister Nirmala Sitharaman said in Lok Sabha.

The minister was referring to concerns raised about high taxes on autofuel during the debate on Finance Bill 2021 in Lok Sabha.

It was not just the central government that levies taxes on fuel, states also do, the minister said in her reply. Besides, when the central government collects taxes, a part of it is devolved to states.

“If I collect 100 out of taxing petrol or diesel, out of that, 41 goes to states," the minister said. This is true in the case of every tax other than items of cess and surcharge. Sitharaman said that in the next GST Council meeting, if a discussion comes up on inclusion of autofuel on GST, it will be taken up.

“In the next GST Council if that discussion comes up, I will be glad to have it in the agenda and discuss it. I have no issues. Let states come and discuss it. The call has to be taken there (at the Council)," the minister said.

Central government’s openness to discuss inclusion of auto fuel in GST comes at a time public sentiment favours a reduction in prices of petrol and diesel. However, a decision on this is possible only with the consent of states, which are also facing financial distress like the Centre. While central and state taxes on autofuel remains high, items subject to GST have seen a gradual reduction in tax incidence due to successive rounds of GST rate cuts.

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