Petroleum Products News

Crude oil prices which touched rock bottom when the covid pandemic broke out in 2020 have gained steadily since then, as the world made progress in the battle against the coronavirus. However, with the onset of the Russia-Ukraine war in February and following supply chain disruptions, oil prices began climbing, peaking at $127.98 in March. With the global economy slowing down, crude oil prices fell as low as $76.1 in the first week of December. However, retail customers may have to wait longer for relief, why? Let us analyze the implications of cheaper oil for the Indian economy.

Total GST collections come at Rs6.78 trillion as compared with the 2018-19 Budget Estimate of Rs7.44 trillion, including SGST and IGST

States are of the view that inclusion of petroleum products under GST is unlikely to reduce their prices as states have powers to levy a tax over and above the peak GST rate

Of the total trade deficit of $18 billion in July 2018, the deficit on account of oil and petroleum products was smaller than the deficit for other items

Currently, diesel, petrol, crude oil, natural gas and aviation turbine fuel are outside the purview of GST, and states have the right to impose VAT on these items

States are reluctant to bring in petrol, diesel under GST and ceding their source of revenue. They want the tax revenues under GST to settle before further changes to the GST architecture

The growth is mainly on account of a spurt in the export of petroleum products, which are up 104% from a year ago

Andhra Pradesh will lose substantial revenue if natural gas is included in GST as its consumption is lesser than production, says state minister Yanamala Ramakrishnudu

Prakash Javadekar welcomed cooperation from the states to share the fuel burden and said that they too levy taxes on petroleum products

GST Council veered around to the idea of registered entities continuing to file GST returns in GSTR 3B form while moving to a system where supplier invoice captures details of the transaction