1 min read.Updated: 18 Sep 2021, 05:36 AM ISTMeghna Sen
Union Finance Minister Nirmala Sitharaman said the Council decided to continue keeping petrol and diesel out of the GST purview as subsuming the current excise duty and VAT into one national rate would impact revenues
Listen to this article
A big meet on Friday of the Goods and Services Tax (GST) Council was expected to bring petrol and diesel within the ambit of indirect tax. However, Union Finance Minister Nirmala Sitharaman said the GST Council felt it was not time to bring petrol and diesel under GST.
The Council decided to continue keeping petrol and diesel out of the GST purview as subsuming the current excise duty and VAT into one national rate would impact revenues.
"GST Council today discussed the issue of bringing petrol and diesel under the GST as per the Kerala HC order. But decided that it was not a time for it," FM Sitharaman said after the meeting in Lucknow.
States also have opposed any plans to initiate talks to include diesel, petrol, and petroleum products under the ambit of GST.
GST rate on bio-diesel for blending in diesel was reduced to 5% from 12%, while the national permit fee for goods carriage has been exempt from GST.
Import of leased aircraft have also been exempted from payment of I-GST, the finance minister said.
The 45th meeting of the GST Council, chaired by FM Sitharaman and comprising state finance ministers, is the first physical meeting since the onset of the coronavirus pandemic. The last such meeting took place 20 months ago on 18 December, 2019.
Since then the GST Council has been meeting via video-conferencing.